Existing-home sales declined in June, falling 2.4% from May to a seasonally adjusted annual rate of 4.09 million, according to the National Association of Realtors (NAR) “Existing-Home Sales” report. Sales were still up 2.8% from one year earlier, but the monthly pullback highlights that buyers remain sensitive to affordability conditions. Activity rose in the Northeast but fell in the Midwest, South, and West.

Mortgage Rates Keep Buyers Cautious

The average 30-year fixed-rate mortgage stood at 6.49% in June, remaining in the range that has shaped buyer activity for much of the year. Lawrence Yun, chief economist for the NAR, said the back-and-forth in monthly sales reflects buyers' sensitivity to even modest rate changes. Still, job gains of more than half a million since the beginning of the year should continue to support housing demand.

Median Price Reaches All-Time High

The median existing-home price climbed to $440,600 in June, marking an all-time high and the 36th consecutive month of year-over-year gains. Prices were 1.8% higher than last June as limited inventory continued to support home values, though appreciation remains moderate compared with the rapid gains of recent years.

Inventory Growth Stalls

Total housing inventory stood at 1.56 million homes at the end of June, representing a 4.6-month supply at the current sales pace. Buyers still have more choices than they did during the market's most competitive years, but inventory slipped slightly from May. The pause in growth raises concerns that supply may not be expanding quickly enough to provide lasting relief for buyers. Inventory was down 0.6% from May but still up 1.3% from a year earlier.

Affordability Improves from Last Year

Despite record prices, housing affordability improved from a year ago, with the NAR Housing Affordability Index rising to 102.3. Gains were recorded across all four regions as wage growth outpaced home price growth, helping offset some pressure from elevated borrowing costs. Yun cautioned, however, that affordability progress could stall if inventory fails to grow consistently.

Buyers Remain Selective

Homes spent a median of 28 days on the market in June, giving buyers slightly more time to evaluate options than they had during the market's fastest-moving periods. First-time buyers accounted for 33% of purchases, continuing to gain ground from a year ago. Cash sales represented 25% of transactions, while individual investors and second-home buyers made up 13% of sales, suggesting today's market remains driven primarily by traditional homebuyers.

What This Means for Buyers and Sellers

The June data points to a market that continues to normalize. Buyers have more room to compare options and negotiate than they did in recent years, but strong competition for well-priced, desirable homes persists. For sellers, record-high prices are encouraging, yet success increasingly depends on realistic pricing, strong presentation, and flexibility when working with selective buyers.

Regional Sales Snapshot

• Northeast: 480,000 sales (+2.1% MoM, unchanged YoY) | Median price: $564,800 (+3.9%)

• Midwest: 980,000 sales (-3% MoM, +2.1% YoY) | Median price: $346,600 (+2.7%)

• South: 1.89 million sales (-3.6% MoM, +3.8% YoY) | Median price: $377,700 (+0.9%)

• West: 740,000 sales (-1.3% MoM, +2.8% YoY) | Median price: $633,600 (+0.9%)