June USA Home Sales – Prices Rise and Buyers Back Out

Existing home sales in the U.S. fell 2.4% in June to a seasonally adjusted annual rate of 4.09 million units, the National Association of Realtors reported Tuesday. The decline missed expectations for a summer pickup. At the same time, the median existing home price hit a record $440,600, marking the 36th straight month of year-over-year gains.

Sales are falling because affordability has deteriorated. The average rate on a 30-year fixed mortgage hovered near 7% through June, according to Freddie Mac data. Buyers who locked in sub-3% rates before 2022 have little reason to sell, keeping inventory tight. That dynamic has frozen transaction volumes even as prices climb.

First-time buyers accounted for 33% of June purchases, up from 31% in May but still below the 40% share NAR considers healthy for a normal market. Homes priced above $1 million continued to sell faster than lower-priced properties, NAR said, reflecting a market where wealthier buyers face less financing pressure.

The supply of existing homes for sale at the end of June stood at 1.32 million units, up 3.1% from May but down 0.5% from a year earlier. At the current sales pace, that represents 3.9 months of inventory. A balanced market typically has 5-6 months of supply.