by This is less than half the year-over-year decrease recorded in June as sales rose in the Northeast and West, but fell in the Midwest and South
WASHINGTON — Year-over-year existing home sales fell 2.5% in July, less than half of the 5.4% yearly decline reported in June, but also higher than the 1.9% drop in April, according to figures released by the National Association of Realtors Thursday.
The NAR also reported that sales rose 1.3% from June, reversing four consecutive months of declines.
A total of 3.95 million existing homes were sold in July, down 2.5% from 4.05 million from July 2023, with sales rising in the Northeast and West and declining in the Midwest and South.
The monthly gains over June were reported in the Northeast, South and West, while home sales remained level in the Midwest. The figures include the sale of existing single-family homes, townhomes, condominiums and co-ops.
Single-family home sales increased 1.4% from June to 3.57 million, representing the lion’s share of the residential properties sold. However, sales of single-family units were down 1.4% from July 2023.
Existing condominium and co-op sales in July totaled 380,000 units, level with June. However, they were down 11.6% from the 430,000 units sold in July 2023.
“Despite the modest gain, home sales are still sluggish,” said NAR Chief Economist Lawrence Yun. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”
According to the NAR, the median existing home price for all housing types was $422,600, up 4.2% from $405,600 in July 2023, with all four regions of the country posting price increases.
The median existing single-family home price was $428,500, up 4.2% from $410,503 in July 2023, while the median existing condominium price was $367,500 in July, up 2.7% from $357,900 in July 2023.
Yun noted that the condominium market is underperforming compared to the single-family home market, as “rising maintenance and insurance costs have lessened the appeal for condominiums.”
By region, the activity was as follows:
In the Northeast, existing home sales totaled 490,000, up 2.1% from July 2023 and up 4.2% from June. The median price in the region was $505,100, up 8.3% from July 2023.
In the Midwest, there were 920,000 existing homes sold, down 5.2% from July 2023 and level with June. The median price in the region was $321,300, up 4.5% from July 2023.
In the South, a total of 1.79 million units were sold, down 3.8% from July 2023 and up 1.1% from June. The median home price was $372,500, up 2.3% from July 2023.
In the West, there were 750,000 homes sold, up 1.4% from July 2023 and June. The median price in the region was $629,500, up 3.4% from July 2023.
Other highlights of the report were as follows:
+ Properties typically remained on the market for 24 days in July, which was up from 20 days in July 2023 and 22 days in June.
+ First-time buyers represented 29% of sales in July, down from 30% in July 2023 but level with June.
+ All cash sales represented 27% of transactions in July, up 26% from July 2023 but down 28% from June. Individual investors or second-home buyers that make up many cash sales purchased 13% of existing homes in July, down from 16% in July 2023 and June.
+ Distressed sales that include foreclosures and short sales accounted for 1% of sales in July, unchanged from July 2023 and June.
+ The 30-year fixed rate mortgage averaged 6.49% as of Aug. 15, according to Freddie Mac. This compares to 7.09% in July 2023 and up from 6.47% the week prior.
