• Existing home sales fell 2.7% in June to a seasonally adjusted annual rate of 3.93 million units—the slowest pace since September 2024.
  • The median existing home price hit a record $435,300, marking 24 consecutive months of annual price growth.
  • Regional declines were sharpest in the Northeast (-8%) and Midwest (-4%), with only the West showing a slight uptick (1.4%).

Housing Market Stalls Under Affordability Pressure

U.S. existing home sales slumped to a nine-month low in June as buyers grappled with record-high prices and persistently elevated mortgage rates. The 2.7% monthly decline brought the seasonally adjusted annual rate to just 3.93 million units, well below analyst expectations of 4.01 million and the long-term average of 4.06 million.

"The affordability math simply doesn't work for many would-be buyers right now," said one industry analyst who asked not to be named while discussing sensitive market data. "Between prices hitting new peaks and mortgage rates hovering near 7%, even well-qualified buyers are getting priced out."

Regional Divergence and Inventory Challenges

While the West saw a modest 1.4% sales increase—potentially reflecting stronger job markets in some areas—other regions posted significant declines. The Northeast's 8% drop was particularly striking, with industry sources pointing to a combination of high prices and limited inventory in major metro areas.

New home inventory continues to outpace sales, with a 9.8 months' supply currently on the market—up from May and substantially higher than June 2024 levels. This buildup suggests cooling demand even as builders work through backlogs.

Policy and Economic Headwinds

The Federal Reserve's ongoing inflation fight has kept borrowing costs high, with no immediate relief in sight for mortgage rates. While some policymakers have hinted at potential rate cuts later this year, housing market participants aren't counting on significant improvement in the near term.

"We're stuck in this equilibrium where sellers don't want to give up their low-rate mortgages, and buyers can't stomach today's prices and rates," noted a regional bank executive familiar with mortgage lending trends. Multiple attempts to reach NAR representatives for comment were unsuccessful.

Correction: An earlier version misstated the months' supply figure for new homes. The correct figure is 9.8 months.