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June home sales drop 2.4% as prices hit record high
June existing home sales fell 2.4% to 4.09 million units, missing forecasts. Median price hit a record $440,600. Tight inventory and high rates keep market lean.
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Sales of previously owned homes in June fell 2.4% from May to a seasonally adjusted annual rate of 4.09 million units, the National Association of Realtors said Tuesday. The reading missed the consensus forecast for a slight month-over-month gain.
The median price of an existing home sold in June reached $440,600, up 1.8% from a year ago and the highest on record. June typically marks the peak of the sales season. Inventory at the end of the month stood at 1.56 million units, down 0.6% from May but 1.3% higher than a year earlier. At the current sales pace, that represents a 4.6-month supply, below the 6-month mark that signals a balanced market.
"The back-and-forth in monthly home sales activity, driven by mild fluctuations in mortgage rates, shows how sensitive home buyers are to affordability conditions," said Lawrence Yun, the NAR's chief economist. "However, job gains – more than half a million since the beginning of the year – will continue to provide support for the housing market."