Existing home sales fell 2.4% in June while the national median sales price climbed to $440,600, the highest level recorded by the National Association of Realtors since 1999.
By yourNEWS Media Newsroom
Sales of previously occupied U.S. homes slowed in June, but prices climbed to a record high, underscoring the affordability pressures facing buyers as mortgage rates remain elevated and inventory stays below historical norms.
Existing home sales fell 2.4% from May to a seasonally adjusted annual rate of 4.09 million units, the National Association of Realtors said Thursday. Sales were up 2.8% compared with June of last year.
The June sales pace came in below expectations. Economists surveyed by FactSet had projected an annualized rate of about 4.21 million units.
Home sales have remained near a 4 million annual pace since 2023, well below the historical norm of about 5.2 million. The housing market has been sluggish since 2022, when mortgage rates began rising from pandemic-era lows. Sales of previously occupied homes were essentially flat last year and remained at a 30-year low.
Through the first half of this year, seasonally adjusted sales of existing homes were up just 0.7% from the same period in 2025.
The slowdown has persisted as mortgage rates have mostly moved higher in the months since the war between the U.S. and Iran began. Expectations of higher inflation tied to rising oil prices have pushed up long-term bond yields, which lenders use as a benchmark for pricing home loans. Mortgage rates have climbed as a result, though they remain below year-ago levels.
Many homes sold in June likely went under contract in April and May, when the average 30-year mortgage rate ranged from 6.23% to 6.53%, the highest level since late August, according to mortgage buyer Freddie Mac.
Even with sales subdued, home prices continued rising. The national median sales price increased 1.8% from a year earlier to $440,600 in June, an all-time high in National Association of Realtors data dating to 1999. Home prices have now risen on an annual basis for 36 consecutive months.
The affordability problem remains especially difficult for first-time buyers. They accounted for 33% of purchases in June, down from 35% in May but up from 30% in June of last year. Historically, first-time buyers have made up about 40% of home sales.
“Without a doubt, the affordability is a major challenge for people who want to become homeowners, which is the reason why we need more supply,” said Lawrence Yun, NAR’s chief economist.
Years of rapid price growth, especially during the early part of the decade when low mortgage rates fueled a buying surge, have left many would-be buyers priced out. A chronic shortage of homes for sale, driven in part by years of below-average new home construction, has also helped keep prices high despite the multiyear sales slump.
Buyers who can afford current mortgage rates or pay in cash may find more favorable conditions in some markets. Median list prices fell 2.5% in June from a year earlier, the steepest annual decline in Realtor.com data going back to 2017.
Pricing trends vary sharply by region. Since peaking in 2022 at $449,000, list prices have fallen 7.3% in the West and 3.5% in the South, according to Realtor.com. In contrast, list prices are up 10% in the Midwest and 12.6% in the Northeast.
Inventory has improved from last year but remains tight compared with pre-pandemic levels. There were 1.56 million unsold homes on the market at the end of June, down 0.6% from May but up 1.3% from June of last year, NAR said.
That remains well below the roughly 2 million homes for sale that was typical before the COVID-19 pandemic.
At the current sales pace, June’s inventory equals a 4.6-month supply. A 5- to 6-month supply is traditionally considered balanced between buyers and sellers.
“We need to see 30%-40% growth in inventory,” Yun said. “We’re not seeing that, so inventory (is) still remaining relatively tight.”
The June data show a housing market still constrained by high prices, elevated borrowing costs and limited supply. While some buyers are seeing softer list prices and more choices in certain regions, the national market remains difficult for households trying to purchase a home for the first time.
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