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Median home sales prices have never been higher, and that might be making home buyers skittish—but this may not persist for much longer, the National Association of REALTORS®’ latest housing report suggests.
Existing-home sales, reflecting completed transactions for single-family homes, townhomes, condos and co-ops, dropped 5.4% year over year in June, even as home prices remained resilient. The median existing-home sales price climbed 4.1% in June to $426,900, the second consecutive month that saw a new record, NAR reported Tuesday.
Still, “even as the median home price reached a new record high, further large accelerations are unlikely,” says NAR Chief Economist Lawrence Yun. “Supply and demand dynamics are nearing a balanced market condition. The month’s supply of inventory reached its highest level in more than four years.”
While home sellers can cash in on their growing equity, potential home buyers are seeing hints that the housing market is thawing. More listings are coming on the market, which means more choices for home buyers and possibly less competition.
“We’re seeing a slow shift from a seller’s market to a buyer’s market,” Yun says. “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
Indeed, inventory of unsold existing homes grew 3.1% in June compared to the previous month and are up about 23% from a year ago. As housing inventory increases, properties are staying on the market longer—typically 22 days in June, up from 18 days a year prior, NAR reports.
All-cash sales remain a sizable chunk of home sales, as buyers look to bypass higher mortgage rates near 7% averages. All-cash sales accounted for 28% of transactions in June, NAR reports. Individual investors and second-home buyers, who tend to make up the biggest bulk of cash sales, purchased 16% of homes in June.
First-time home buyers, despite housing affordability headwinds, continue to find a way: They comprised 29% of sales in June, up from 27% a year earlier.
Regional Breakdown
Here’s a closer look at existing-home sales from across the country in June, according to NAR’s report:
- Northeast: Sales fell 2.1% from May, reaching an annual rate of 470,000, marking a 6% decline from a year ago. Median price: $521,500, up 9.7% from one year earlier.
- Midwest: Sales dropped 8% from one month ago to an annual rate of 920,000 in June. Sales are down 6.1% from the prior year. Median price: $327,100, up 5.5% from June 2023.
- South: Sales decreased nearly 6% from May to an annual rate of 1.76 million in June. Sales are down 6.9% from one year ago. Median price: $373,000, up 1.7% from last year.
- West: Existing-home sales fell 2.6% to an annual rate of 740,000, essentially identical to a year ago. Median price: $629,800, up 3.5% from June 2023.
