Affordability constraints have continued to limit homebuying activity this summer, with existing home sales falling 3.3% month-over-month nationwide as of last measure, according to the National Association of REALTORS® (NAR). Mortgage rates have approached 7% in recent months, leading many prospective buyers to put their home purchase plans temporarily on hold. But higher rates have also kept many existing homeowners from listing their homes for fear of giving up the low-rate mortgages they locked in a few years ago, when rates were significantly lower.
New Listings were down 23.2% for single-family homes and 37.7% for Condo/TIC/Coop properties. Pending Sales decreased 19.9% for single-family homes and 18.5% for Condo/TIC/Coop properties.
The Median Sales Price was down 13.0% to $1,450,000 for single-family homes and 3.1% to $1,159,500 for Condo/TIC/Coop properties. Months' Supply of Inventory increased 6.3% for single-family units and 15.6% for Condo/TIC/Coop units.
Despite a drop in existing home sales, home prices have remained near record highs, with a national median sales price of $410,200 as of last measure, 0.9% below the all-time high of $413,800 recorded in June 2022, according to NAR. With only 3.1 months’ supply heading into July, the lack of inventory has boosted competition among buyers and put upward pressure on sales prices, especially in more affordable markets, where competition for homes remains particularly strong.