Sales of previously owned homes in the US fell to their lowest level since last September, while the national median home price reached an all-time high of $435,300 in June, according to the National Association of Realtors (NAR).
Existing home sales dropped 2.7% from May to June, missing economists' expectations of a 4.01 million annual pace. The median sales price rose 2% year-over-year, marking the 24th consecutive month of annual price increases.
The housing market has been sluggish since early 2022, when mortgage rates began rising from pandemic-era lows. Last year, home sales hit their lowest level in nearly 30 years, and the spring buying season—typically the busiest—remained lackluster.
High mortgage rates, hovering near 7% for a 30-year loan, have added hundreds of dollars to monthly costs, limiting affordability. First-time buyers accounted for just 30% of sales in June, well below the historical average of 40%.
Inventory rose 16% year-over-year to 1.53 million unsold homes, but remains below the pre-pandemic norm of 2 million. Homes stayed on the market for an average of 27 days, up from 22 days a year ago. Some 20.7% of listings saw price reductions, the highest June share since 2016.
NAR chief economist Lawrence Yun noted that if mortgage rates fall to 6%, an additional half-million homes could be sold. However, if rates remain stuck, sales and prices are expected to see only minor changes.
