In June, sales of previously owned homes fell by 2.4% from May to 4.09 million units on a seasonally adjusted annualized basis, according to the National Association of Realtors. This decline contrasts with analysts' expectations for a slight increase. However, sales were up 2.8% compared to June of the previous year.
Lawrence Yun, the Realtors' chief economist, noted that the fluctuations in monthly sales reflect buyers' sensitivity to affordability, particularly as mortgage rates have risen sharply since March. Despite the drop in sales, job gains exceeding half a million this year are expected to support the housing market.
The inventory of homes available for sale at the end of June was 1.56 million units, a slight decrease from May but an increase from June 2025, representing a 4.6-month supply, which is below the balanced market level of 6 months. The median price of existing homes reached a record high of $440,600, up 1.8% from the previous year.
Yun emphasized that without an increase in inventory, home prices could continue to rise, complicating long-term affordability. Sales trends indicate that the luxury market is performing well, with homes priced between $750,000 and $1 million seeing a nearly 14% increase in sales, while lower-priced homes are struggling.
Additionally, first-time buyers accounted for 33% of sales, an increase from 30% a year ago, indicating some resilience in the market despite the challenges