Key facts
- Existing home sales decreased by 2.4% in June from May to a seasonally adjusted annual rate of 4.09 million units.
- Home prices reached a new record median of $440,600 in June, marking the 36th consecutive month of year-over-year gains.
- Housing inventory was 1.56 million units, representing a 4.6-month supply.
- The average 30-year fixed mortgage rate in June was 6.49%.
- First-time buyers comprised 33% of purchases, while cash sales made up 25%.
Existing home sales in the U.S. experienced a 2.4% month-over-month decline in June, reaching a seasonally adjusted annual rate of 4.09 million units, according to the National Association of Realtors (NAR). This decrease is attributed to the continued impact of higher mortgage rates on buyer activity. Despite the monthly dip, sales were up 2.8% compared to June of the previous year.
The median price for existing homes hit a record high of $440,600, marking the 36th consecutive month of year-over-year price increases. However, NAR Chief Economist Lawrence Yun noted that affordability has improved compared to a year ago due to wage growth outpacing home price appreciation. Housing inventory stood at 1.56 million units, a 4.6-month supply, which was slightly down from May but up from the prior year.
Single-family home sales saw a 2.4% decline from May but a 3.3% increase year-over-year, with a median price of $446,400. Condominium and co-op sales fell by 2.7% both monthly and annually, with a median price of $380,000. The Northeast was the only region to record a monthly sales gain, while other regions saw declines. Homes spent an average of 28 days on the market.
First-time buyers represented 33% of transactions, and cash sales accounted for 25%. The average 30-year fixed mortgage rate in June was 6.49%. Experts suggest that buyer and seller caution, stemming from market uncertainty and affordability concerns, is dampening sales activity.