Key takeaways

  • Existing-home sales in June 2024 fell 5.4 percent both month-over-month and year-over-year, according to the National Association of Realtors.
  • The nationwide median sale price was $426,900, up 4.1 percent from last year and the second record high in a row.
  • Inventory in June rose to a 4.1-month supply, a 3.1 percent improvement over May and a sign that buyers are gaining more leverage in the market.

The housing market again showed a slowdown in sales but a rise in prices in June, a new report by the National Association of Realtors (NAR) shows. While the median home-sale price reached a record high for the second consecutive month, sales of existing homes dropped 5.4 percent from last month and the same amount from year.

High mortgage rates certainly contribute to the sluggish sales figures. While rates have thankfully remained below the 8 percent mark briefly seen in October 2023, they are still close to 7 percent. The average rate on a 30-year fixed-rate loan was 6.92 percent as of July 17, according to Bankrate’s most recent survey of large lenders. Combined with the historically high prices, that means affordability challenges remain daunting for homebuyers.

The fate of the housing market in the coming months will be dictated in part by the direction of mortgage rates. — Mark Hamrick, Bankrate Senior Economic Analyst

“The fate of the housing market in the coming months will be dictated in part by the direction of mortgage rates, as well as the health of the broader economy,” says Mark Hamrick, Bankrate’s senior economic analyst. “The market could benefit from a combination of tailwinds, if they were to develop and are sustained.”

Existing-home sales keep ticking downward

The count of existing-home sales includes all completed resales, including single-family houses, condos, townhouses and co-ops. According to NAR, the number of sales nationally fell 5.4 percent year-over-year to an annual pace of 3.89 million transactions in June 2024.

Regionally, all areas recorded decreases in June. Sales fell the most in the Midwest, down 8 percent month-over-month and 6.1 percent from last year. In the South, sales were down 5.9 percent from May and 6.9 percent year-over-year. The Northeast saw a 6 percent drop from last year and a 2.1 percent drop from last month, while the West was flat from 2023 but down 2.6 percent from May.

Days on market

Properties typically remained on the market for 22 days in June, down slightly from 24 days in May. But in June 2023, that figure was just 18 days. Selling times are a crucial measure at any time of year, but especially during the spring and summer selling season.

Home prices hit new all-time high

The nationwide median sale price for existing homes in June clocked in at $426,900, up 4.1 percent from last year and the highest price NAR has ever recorded. This is the second month in a row to see a new all-time-high home price after May’s $419,300 — before that, the record was $413,800, set in June 2022. This month’s jump marks 12 full months of year-over-year price increases.

Supply and demand dynamics are nearing a balanced market condition. — Lawrence Yun, Chief Economist, National Association of Realtors

However, NAR Chief Economist Lawrence Yun predicts the increases will slow down going forward. “Even as the median home price reached a new record high, further large accelerations are unlikely,” Yun said in a statement. “Supply and demand dynamics are nearing a balanced market condition. The months supply of inventory reached its highest level in more than four years.”

All four geographic regions experienced annual price increases in June. The West continued to have the highest median price by far at $629,800, up 3.5 percent from a year ago. In the Northeast, the median rose 9.7 percent from a year ago to $521,500. The South’s median price rose 1.7 percent to $373,000, and the Midwest’s median rose 5.5 percent to $327,100.

First-time homebuyers made up 29 percent of sales in June, down from 31 percent in May but up from 27 percent in June of last year. All-cash deals accounted for 28 percent of June sales, flat from last month but up from 26 percent in June 2023.

Housing inventory on the rise, but still too low

Total housing inventory — the overall number of homes for sale on the market — stood at 1.32 million units at the end of June. That’s a significant improvement, up a modest 3.1 percent from May but a huge 23.4 percent jump from a year ago. The figure represents 4.1-month supply, which is getting closer to the five-to-six months typically required for a healthy, balanced market. The last time the nation’s inventory supply surpassed the four-month mark was four years ago, in May 2020.

Despite the sharp rise in mortgage rates this past fall, which has kept many homeowners from selling and thus kept those homes off the market, things may be looking up for homebuyers. “We’re seeing a slow shift from a seller’s market to a buyer’s market,” 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.”