Existing-home sales in the United States saw a 2.7% decline in June, according to the National Association of Realtors (NAR) Existing-Home Sales Report. The seasonally adjusted annual rate now stands at 3.93 million units. Despite this month-over-month decrease, there was no change in sales compared to the previous year.
The report highlighted a 0.6% reduction in unsold inventory, which is now at 1.53 million units or a 4.7-month supply. The median existing-home sales price rose by 2% year-over-year to $435,300, marking the highest level ever recorded.
Sales fell across most regions month-over-month except for the West, where they increased slightly. Year-over-year, declines were noted in the Northeast and West, while increases occurred in the Midwest and South.
Lawrence Yun, NAR Chief Economist, commented on the current market conditions: "The record high median home price highlights how American homeowners' wealth continues to grow—a benefit of homeownership." He added that "multiple years of undersupply are driving the record high home price."
Yun also pointed out that high mortgage rates are impacting sales levels: "High mortgage rates are causing home sales to remain stuck at cyclical lows." He suggested that if mortgage rates were to drop to 6%, it could lead to an increase in first-time homeowners and overall sales activity.
The national snapshot for June showed no change in total existing-home sales year-over-year but a slight monthly decline. Inventory figures indicate a slight increase from last year's levels.
Regional data showed varied performance with notable decreases in Northeast and Midwest sales month-over-month but increases year-over-year in some areas like the Midwest and South.
In terms of financing trends, average mortgage rates as of July 17 stood at 6.75%, slightly up from earlier this month but down from one year ago.
The NAR's Pending Home Sales Index for June will be released on July 30, followed by July's Existing-Home Sales report on August 21.
