Existing Home Sales Drop in June; Prices Reach Record High  

High mortgage rates are causing home sales to remain stuck at cyclical lows.

Lawrence Yun, chief economist for the National Association of Realtors (NAR), in a press release regarding existing home sales data for June.

Why It Matters: The status of the housing market is an important indicator of the U.S. economy’s strength. U.S. existing-home (aka previously owned) sales account for the largest portion of the nation’s housing market at more than 90%. The latest sales report shows sales of previously owned homes decreased for the month of June by 2.7%.

• The average price of a home in June was $435,300 – up 2% since last year, according to NAR data.
• Home sales on the higher end of the market are doing well, selling more quickly than those priced below $500,000. 
• In June, houses spent an average of 27 days on the market, compared to 22 days in June 2024. 

Currently, the average mortgage rate is 6.75%. “If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners,” said Yun.  

Learn More: 

• June home sales drop as prices hit a record high (CNBC) 
• NAR Existing-Home Sales Report Shows 2.7% Decrease in June (National Association of Realtors)