Existing-Home Sales Fall 5.4% in June

Existing-home sales dropped for the fifth straight month in June, the National Association of Realtors reported Wednesday.

Total existing-home sales–completed transactions that include single-family homes, townhomes, condominiums and co-ops–dipped 5.4% from May to a seasonally adjusted annual rate of 5.12 million in June, NAR reported. Year-over-year, sales fell 14.2%.

“Falling housing affordability continues to take a toll on potential home buyers,” said Lawrence Yun, Chief Economist with NAR. “Both mortgage rates and home prices have risen too sharply in a short span of time.”

NAR noted three out of four major U.S. regions experienced month-over-month sales declines and one region held steady. Year-over-year sales sank in all four regions.

The report said total housing inventory reached 1.26 million units at the end of June, an 9.6% increase from May and a 2.4% rise from the previous year (1.23 million). Unsold inventory sits at a 3.0-month supply at the current sales pace, up from 2.6 months in May and 2.5 months in June 2021.

NAR reported the median existing-home price for all housing types in June equaled $416,000, up 13.4% from June 2021 ($366,900). “This marks 124 consecutive months of year-over-year increases, the longest-running streak on record,” the report said.

Properties typically remained on the market for 14 days in June, down from 16 days in May and 17 days in June 2021. The 14 days on market represented the fewest since NAR began tracking it in 2011. Eighty-eight percent of homes sold in June 2022 were on the market for less than a month.

“Finally, there are more homes on the market,” Yun noted. “Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”