U.S. existing home sales fell more than expected in June, hitting a seasonally adjusted annual rate of 3.89 million units, the lowest since December, as the median house price reached a record high. The National Association of Realtors (NAR) reported a 5.4% decline in home resales from May, with economists forecasting a slip to 4.00 million units. Home prices increased by 4.1% year-over-year to $426,900, the second consecutive month of record highs.
Despite the slump in sales, the average rate on a 30-year fixed-rate mortgage dropped to a four-month low of 6.77% last week, down from 6.89%, offering hope for a rebound. Lawrence Yun, NAR’s chief economist, noted a slow shift from a seller’s market to a buyer’s market. Sales fell across all regions, with the Midwest experiencing the sharpest decline at 8%.
Market Overview:- U.S. existing home sales fell 5.4% in June.
- Median home price hit a record high of $426,900.
- Average 30-year mortgage rate dropped to 6.77%.
- Inventory increased 3.1% to 1.32 million units.
- Home sales fell in all regions, with the Midwest down 8%.
- First-time buyers accounted for 29% of sales.
- Declining mortgage rates may boost future sales.
- Balanced market conditions are nearing with rising inventory.
- Continued high insurance premiums and limited new construction pose challenges.
Housing inventory increased 3.1% to 1.32 million units last month. Supply jumped 23.4% from one year ago.
Properties typically stayed on the market for 22 days in June compared to 18 days a year ago. First-time buyers accounted for 29% of sales versus 27% a year ago.
