June home sales disappoint as prices reach an all-time high
High mortgage rates and record high prices are causing homebuyers to pull back.
Sales of previously owned homes in June fell 2.4% on a seasonally adjusted, year-over-year basis from May to 4.09 million units, according to the National Association of Realtors. Housing analysts were predicting a slight month-over-month increase.
However, June sales were 2.8% higher than the same month of the previous year.
“The back-and-forth in monthly home sales activity driven by slight fluctuations in mortgage interest rates shows how sensitive homebuyers are to affordability conditions,” Lawrence Yun, the real estate agents’ chief economist, said in a statement. “However, employment growth of more than half a million since the beginning of the year will continue to provide support to the housing market.”
This number represents closed sales, meaning there were contracts signed in May, when the average rate for a 30-year fixed mortgage was still high. It started to rise sharply at the beginning of March, when the Iranian war began.
At the end of June, the stock reached 1.56 million units, a decrease of 0.6% compared to May and an increase of 1.3% compared to June 2025. At the current sales pace, this represents a 4.6-month supply. The market is considered to be balanced between buyers and sellers in the 6-month supply.
Prices continue to rise because the market is still weak. The median price of an existing home sold in June was $440,600, up 1.8% from the previous year and the highest price in history. June is generally the strongest month in terms of both sales and prices.
“If inventory growth continues to stagnate, progress in long-term home affordability could be stalled. Without consistent increases in inventory, home prices could accelerate. Bringing more supply to market to expand the opportunity for homeownership is critical,” Yun said.
Sales continue to be strong at the higher end of the market. Sales of homes priced under $100,000 fell 1.7 percent from the previous year, while sales of homes priced between $100,000 and $250,000 increased less than 1 percent. Meanwhile, sales of homes priced between $750,000 and $1 million were up nearly 14% from the previous year, while sales of homes priced over $1 million were up 18%.
Regionally, home sales fell everywhere except the Northeast in June.
A quarter of all sales were made entirely in cash; last year’s rate was 29%. First-time shoppers accounted for 33% of sales; This rate was 30% compared to the previous year.
