Existing Home Sales Slip in July

(Courtesy National Association of Realtors)

Existing-home sales fell 2.2% in July to a seasonally adjusted annual rate of 4.07 million, the National Association of Realtors reported Tuesday.

Sales receded 16.6% from one year ago, NAR said.

Among the four major U.S. regions, sales grew in the West but faded in the Northeast, Midwest and South. All four regions registered year-over-year sales declines.

The median existing-home sales price rose 1.9% from one year ago to $406,700, the report said. This represented the fourth time the monthly median sales price eclipsed $400,000, joining June 2023 ($410,000), June 2022 ($413,800) and May 2022 ($408,600).

The inventory of unsold existing homes increased 3.7% from the previous month to 1.11 million at the end of July, or the equivalent of 3.3 months’ supply at the current monthly sales pace.

“Two factors are driving current sales activity: inventory availability and mortgage rates,” NAR Chief Economist Lawrence Yun said. “Unfortunately, both have been unfavorable to buyers.”

Total housing inventory registered 1.11 million units at the end of July, up 3.7% from June but down nearly 15% from one year ago. Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 3.2 months in July 2022. “Most homeowners continue to enjoy large wealth gains from recent years with little concern about home price declines,” Yun said. “However, many renters are concerned as they’re facing growing affordability challenges because of high interest rates.”