by However, sales declined 2.7% from May, with decreases reported in the Northeast, Midwest and South, and an increase reported in the West
WASHINGTON — June existing home sales were flat compared to a year earlier, a positive development amid four straight months of year-over-year declines since February.
However, they declined 2.7% from May, to 3.93 million units, with sales dropping in the Northeast, Midwest and South, while rising in the West. Year-over-year sales fell in the Northeast and West and rose in the Midwest and South.
There also was a 2% increase in the median home price, which totaled $435,300, up from $426,900 a year ago and the highest reported by the National Association of Realtors. It also was the 24th consecutive month of year-over-year increases, the NAR said.
“The record high median home price highlights how American homeowners’ wealth continues to grow — a benefit of homeownership,” said NAR Chief Economist Lawrence Yun. “The average homeowner’s wealth has expanded by $140,900 over the past five years.”
“Multiple years of undersupply are driving the record-high home price,” Yun added, noting that home construction continues to lag population growth. “This is holding back first-time homebuyers from entering the market. More supply is needed to increase the share of first-time homebuyers in the coming years even though some markets appear to have a temporary oversupply at the moment.”
Single-family home sales totaled 3.57 million units, in June, representing 91% of overall home sales. This was up .6% from June 2024, but down 3% from May. The median home price was $441,500, up 2% from June 2024.
Condominium and co-op sales represented the balance, totaling 360,000 units, which was down 5.3% from June 2024 but level with May. The median price was $374,500, up .8% from June 2024.
In June there also was a .6% decline in inventory from May, with 1.53 million units, or a 4.7-month supply. Inventory was up 15.9% from June 2024, when there were 1.32 million units on the market.
Yun, the NAR economist, said that high interest rates are “causing home sales to remain stuck in cyclical lows.” Citing Freddie Mac, the NAR said the average 30-year fixed mortgage rate was 6.75% as of July 17, up from 6.72% one week before and down from 6.77% one year ago.
“If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners,” Yun said, adding, “Expanding participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales to increase across the country due to strong income growth, healthy inventory and a record-high number of jobs.”
By region, activity was as follows:
+ In the Northeast, existing home sales totaled 460,000, down 4.2% from June 2024 but down 8% from May. The medial price was $5432,300, up 4.2% from June 2024.
+ In the Midwest, sales totaled 950,000, down 2.2% from June 2024 and down 4% from May. The median home price was $337,600, up 3.4% from June 2024.
+ In the South, there were 1.81 million units sold, up 1.7% from June 2024 and down 2.2% from May. The median price was $374,500, up .3% from June 2024.
+ In the West, there were 710,000 homes sold, down 4.1% from June 2024 but up 1.4% from May. The median price was $636,100, up 1% from June 2024.
Othe highlights of the report were as follows:
+ Properties were on the market for a median of 27 days, up from 22 days in June 2024 and unchanged from May.
+ 30% of sales were first-time buyers, which was up 29% from June 2024 and unchanged from May.
+ 29% of sales were cash sales, up from 28% in June 2024 and up from 27% in May.
+ 14% of sales were to individual investors or second-home buyers, which was down from 16% in June 2024 and down from 17% in May. The June percentage is the lowest level since September 2022, which the NAR said is because of individual investors stepping back from the market.
+ 3% of sales also were distressed sales including foreclosures and short sales, which the NAR said is up from 2% in June 2024 and unchanged from May.
