Nation’s Housing Slump Continues: Existing Home Sales Fall to Slowest Pace in June

The U.S. housing market is experiencing a deepening slump as sales of previously owned homes hit a slow pace not seen since December. According to the National Association of Realtors, existing home sales fell 5.4% in June from May to a seasonally adjusted annual rate of 3.89 million.

This marks the fourth consecutive month of declines in home sales, with June sales also down 5.4% compared to the same time last year. Despite the slowdown in sales, home prices continued to rise, reaching an all-time high of $426,900, up 4.1% from the previous year.

The increase in home prices comes as the supply of properties on the market also climbed to its highest level since May 2020. Lawrence Yun, chief economist at NAR, noted that while there is increased inventory, sales have not yet picked up to match.

With about 1.32 million unsold homes on the market, a 23% increase from the previous year, there is currently a 4.1-month supply available. This suggests a shift towards a more balanced market between buyers and sellers, potentially favoring homebuyers.

Despite the high prices, sellers are still benefiting from the tight housing market, with homes selling quickly and often for more than their list price. The housing market has been struggling since 2022, when mortgage rates began to rise from pandemic-era lows.

Experts believe that many Americans may be waiting for mortgage rates to come down before entering the market. The average rate on a 30-year mortgage has remained above 6% this year, influenced by factors such as the economy and inflation.

Lower mortgage rates could potentially spur more homeowners to sell, as some are holding onto fixed-rate mortgages below 3% or 4%. However, first-time homebuyers without home equity face challenges entering the market, accounting for only 29% of sales last month.

Overall, the housing market is facing a complex mix of challenges, with sales slowing, prices climbing, and buyers and sellers navigating the impact of mortgage rates on their decisions.