Sales of previously owned homes in the United States declined by 2.4% in June compared to May, reaching a seasonally adjusted annualized rate of 4.09 million units, according to the National Association of Realtors. This drop was contrary to housing analysts' expectations of a slight month-over-month gain. However, June sales were still 2.8% higher than the same month a year prior, indicating some year-over-year improvement [1].
The median price for an existing home sold in June hit an all-time high of $440,600, marking a 1.8% increase from the previous year. This price surge comes as inventory at the end of June stood at 1.56 million units, down 0.6% from May but 1.3% higher than June 2025. At the current sales pace, this represents a 4.6-month supply, which is below the 6-month threshold considered a balanced market between buyers and sellers [1].
Lawrence Yun, chief economist for the Realtors, noted that the fluctuations in monthly home sales are closely tied to changes in mortgage rates, which have been rising since March. Yun emphasized that while job gains—over half a million since the start of the year—are supporting the housing market, persistent low inventory could hamper progress on long-term affordability. He stressed the importance of increasing supply to prevent further acceleration in home prices and to expand homeownership opportunities [1].
Sales were strongest in the higher-end market segments: homes priced between $750,000 and $1 million saw sales jump nearly 14% year-over-year, and those above $1 million rose 18%. In contrast, sales of homes below $100,000 fell 1.7%, and those between $100,000 and $250,000 increased by less than 1%. Regionally, June home sales declined month-over-month in all areas except the Northeast. Additionally, all-cash sales accounted for 25% of transactions, down from 29% last year, while first-time buyers made up 33% of sales, up from 30% a year ago [1].
CONCLUSION
June's disappointing home sales data highlights ongoing affordability challenges as prices reach record highs and inventory remains tight. While job growth offers some support, the market's sensitivity to mortgage rates and limited supply could continue to constrain sales and price stability. Expanding inventory is seen as critical to improving long-term housing affordability.