June home sales drop as prices hit a record high
Los Angeles, California, Houses in the United States, Sunday, July 13, 2025. As in the wider US market, home sales slowed down in Southern California as high interest rates and economic uncertainty.
Eric Thayer | Bloomberg | Getty Images
According to the National Real Estate Association, the sales of the previously owned houses in June, seasonally adjusted, fell 2.7% on an annual basis of May 3.93 million. Analysts were only expecting a decrease of 0.7%. Sales have not changed since June 2024.
This report is based on closing, so according to Mortgage News Daily, contracts signed in April and May when the average ratio of 30 -year fixed mortgage increases over 7% and never falls below 6.8%.
“High mortgage rates cause home sales to stuck at cyclical abortions,” Nar’s chief economist, Nar’s chief economist. He said. “If the average mortgage rates are going to fall to 6%, our scenario analysis shows that 160,000 tenants are the home owners for the first time and that there is a sales activity from existing hosts.”
Mortgage ratios did not act significantly in the last few months, and stubbornly high because of their concerns about a wider economy. Now the average ratio is 6.77%.
It continues to gain supply with 1.53 million units for sale at the end of June. This represents a 4.7 -month -old supply at an annual increase of 15.9% and existing sales rate. A 6 -month supply is considered balanced between buyer and seller, so the market is still simple.
The average price of a house sold in June was $ 435,300 with an increase of 2% from year to year and another record higher for June. This is the 24th month of annual increases.
Yun, “Reduction for several years increases the price of high -record home. Home construction continues to delay the population growth. This for the first time prevents home buyers from entering the market.” He said.
Sales continue to perform better at the top of the market. The houses priced below $ 100,000 fell by 5% annually. The houses, which were priced between 100,000 and 250,000 dollars, increased by 5%. And the houses priced over $ 1 million increased by 14%.
The houses spend longer in the market on average in 27 days compared to 22 days last June. High -level houses sell faster than priced under $ 500,000.
For the first time, buyers represented 30% of sales. Historically, these demographic accounts make up 40% of all buyers. The share of all cash agreements increased in 29% of sales. Previously, cash sales made up approximately 20% of the market.
Listed Houses, 2.5 last month and 2.4 offers from 2.9 from 2.9 in the previous year.
