The latest data on the US housing market reveals a decline in sales for June alongside a new peak for property prices.
Key Data Points
Sales of existing homes fell 2.4% in June compared to May.
At the end of June, the inventory of available homes stood at 1.56 million units, a decrease of 0.6% from May but an increase of 1.3% compared to June 2025.
All-cash transactions accounted for a quarter of all sales, down from 29% last year.
The combination of persistently high mortgage rates and record-high home prices is clearly dampening buyer enthusiasm.
According to data from the National Association of Realtors (NAR), the seasonally adjusted annualized rate for existing home sales in June was 4.09 million units, representing a 2.4% decline from May. This figure contrasts with housing analysts' widespread expectations for a slight monthly increase.
Nevertheless, June sales were still 2.8% higher than the same period last year.
In a statement, NAR Chief Economist Lawrence Yun noted, "The fact that small fluctuations in mortgage rates can cause monthly sales figures to swing demonstrates the high sensitivity of homebuyers to affordability. However, with over 500,000 new jobs added this year, a strong labor market will continue to support the housing sector."
This data reflects completed transactions, with most corresponding purchase contracts signed in May, a period when the average rate for a 30-year fixed mortgage was still on an upward trajectory following the rapid rise that began after the outbreak of conflict in Iran in early March.
At the end of June, the inventory of unsold homes on the market was 1.56 million, down 0.6% from May but up 1.3% year-over-year. At the current sales pace, this represents a supply of just 4.6 months. The industry generally considers a six-month supply to indicate a balanced market between buyers and sellers.
The overall tightness in housing supply continues to push prices higher. The median sales price for existing homes sold in June reached a record $440,600, up 1.8% from a year ago. June is historically a peak month for both sales volume and prices.
Lawrence Yun emphasized, "If the stagnation in inventory growth persists, it will hinder long-term progress in improving housing affordability. Without a steady expansion of inventory, the pace of home price increases could accelerate further. Increasing the supply of homes on the market and broadening access to homeownership are critical priorities."
Divergence Across Price Segments
Sales activity varied significantly by price point, with high-end properties leading the way.
Sales of homes priced below $100,000 fell 1.7% year-over-year.
Sales in the $100,000 to $250,000 segment saw an increase of less than 1%.
Sales of high-end homes priced between $750,000 and $1 million surged nearly 14%.
Sales of luxury properties priced over $1 million jumped 18%.
Regional Performance
Looking at regional trends, home sales in June declined month-over-month in all areas except the Northeast.
All-cash purchases made up 25% of total transactions, down from 29% last year. First-time buyers accounted for 33% of sales, an increase from 30% last year.
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