The latest data from the National Association of Realtors (NAR) shows that existing-home sales fell 2.7% in June, bringing the seasonally adjusted annual rate to 3.93 million. Yet despite slower activity, prices continued to climb, with the median sales price reaching a record $435,300―up 2% from a year ago. For buyers and sellers alike, the market remains in flux, shaped by low inventory, elevated mortgage rates, and long-term supply constraints.

Prices Break Records―Again

According to Lawrence Yun, chief economist for the NAR, "The record-high median home price highlights how American homeowners' wealth continues to grow―a benefit of homeownership. The average homeowner’s wealth has expanded by $140,900 over the past five years." June’s median price of $435,300 marked the highest ever recorded for the month, driven by years of underbuilding and persistent supply shortages―particularly challenging for first-time buyers.

Who’s Buying—and Who’s Not

First-time buyers made up 30% of June’s sales, matching May and edging out last year’s 29%. Cash buyers accounted for 29%, while investor activity fell to 14%―the lowest level since 2022―as high prices and borrowing costs continue to squeeze margins. Homes spent a median of 27 days on the market, unchanged from May but slightly longer than a year ago, as buyers remain selective.

A Market Waiting on Rates

With 30-year fixed mortgage rates averaging around 6.75% in July, many would-be sellers are holding off, reluctant to give up the lower rates they locked in years ago. "High mortgage rates are keeping home sales at cyclical lows," said Yun. "If rates dropped to 6%, our analysis suggests 160,000 renters could become first-time buyers, with increased activity from existing homeowners."

Inventory Slowly Builds, but Still Tight

Inventory remains tight by historical standards, though there are signs of easing. Total housing inventory reached 1.53 million units in June, up 15.9% from a year ago, representing a 4.7-month supply―still well below the six-month benchmark for a balanced market.

Looking Ahead

Despite the current slowdown, strong job growth and rising incomes could drive more market activity later this year―if mortgage rates ease. In the meantime, sellers should price competitively and be prepared for a longer time on the market, while buyers should monitor local trends and affordability shifts closely.

Regional Sales Snapshot

• Northeast: 460,000 existing-home sales (-8% MoM, -4.2% YoY) | Median Price: $543,300 (+4.2%)

• Midwest: 950,000 existing-home sales (-4% MoM, +2.2% YoY) | Median Price: $337,600 (+3.4%)

• South: 1.81 million existing-home sales (-2.2% MoM, +1.7% YoY) | Median Price: $374,500 (+0.3%)

• West: 710,000 existing-home sales (+1.4% MoM, -4.1% YoY) | Median Price: $636,100 (+1%)