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In June, existing-home sales continued to decline across four U.S. regions while the median existing-home price reached a record high for the second consecutive month, according to data released Friday by the National Association of Realtors (NAR).
The median existing-home price jumped by 4.1 percent in June 2023 to $426,900 for all housing types, a record high for the second consecutive month and the 12th consecutive month with year-over-year price increases showing in all four U.S. regions.
Existing-home sales declined 5.4 percent nationally between May and June to an annual rate of 3.89 million, and were down from 4.11 million a year previous.
“We’re seeing a slow shift from a seller’s market to a buyer’s market,” NAR Chief Economist Lawrence Yun said. “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
The total housing inventory registered at the end of June was 1.32 million units, up 3.1 percent from May and up 23.4 percent from a year before. The total of unsold inventory represents a supply of 4.1 months at the current sales pace, according to NAR.
According to the Realtors Confidence Index, properties typically remained on the market for 22 days in June, down from 24 days in May and up from 18 days the previous year.
“Some 1.32 million homes were on the market at the end of June, and that’s a quarter of a million more than 12 months earlier,” Holden Lewis, home and mortgage expert at NerdWallet, said. “Each month, buyers have more inventory to choose from, and eventually this dynamic will keep house prices from rising so fast.”
In the Northeast, existing-home sales declined 2.1 percent between May and June to an annual rate of 470,000, down 6 percent from the previous year. In the South, existing-home sales declined 5.9 percent from May to an annual rate of 1.76 million in June, down 6.9 percent from the year before.
Existing-home sales in the Midwest declined 8 percent to an annual rate of 920,000 in June, down 6.1 percent from a year before. In the West, sales dropped 2.6 percent to an annual rate of 740,000, identical to the year prior.
“Homebuying is likely to remain a cornerstone of the American dream. However, relatively steady rent, at a level that is up more than 20 percent compared to five years ago, and rising home prices make it challenging for aspiring owners to break into the market,” Realtor.com Chief Economist Danielle Hale said.
“An increase in new home construction, which would boost supply, and a reduction in the cost of borrowing, which we’ve started to see and expect to continue, should help improve conditions for buyers and thus the number of home sale transactions in the months ahead.”
