Existing-Home Sales Slip in June

(Illustration: Mike Sorohan. Thumbnail photo: National Association of Realtors)

Existing-home sales decreased by 2.7% in June, the National Association of Realtors reported Wednesday.

Month-over-month sales declined in the Northeast, Midwest and South and rose modestly in the West, the report said. Year-over-year, sales fell in the Northeast and West, while rising in the Midwest and South.

“High mortgage rates are causing home sales to remain stuck at cyclical lows, ” NAR Chief Economist Lawrence Yun said. “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.”

The existing median home price climbed to a record $435,000 in June, up 2% from a year ago. Yun noted multiple years of undersupply are driving home prices higher. “Home construction continues to lag population growth, ” he said. “This is holding back first-time home buyers 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.”

Yun added that 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,” he said.

The report noted the median time on market for single-family houses was 27 days, unchanged from May but up from 22 days in June 2024.