U.S. home sales drop 5.4% as median prices hit all-time high of $426,900

(The Center Square) – Sales of existing homes in the U.S. fell 5.4% last month while median prices jumped 4.1% to set a new all-time high at $426,900 – the second straight month it reached an all-time high and the 12th consecutive month of year-over-year price gains.

Existing-home sales slumped 5.4% in June to a seasonally adjusted annual rate of 3.89 million. According to the National Association of Realtors, sales also fell 5.4% from one year ago.

The inventory of unsold existing homes rose 3.1% from the previous month to 1.32 million at the end of June, or the equivalent of 4.1 months' supply at the current monthly sales pace.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – declined 5.4% from May to a seasonally adjusted annual rate of 3.89 million in June. Year-over-year, sales also dropped 5.4% (down from 4.11 million in June 2023).

"We're seeing a slow shift from a seller's market to a buyer's market," NAR Chief Economist Lawrence 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."

The median existing-home price for all housing types in June was $426,900, an all-time high and an increase of 4.1% from one year ago ($410,100).

"Even as the median home price reached a new record high, further large accelerations are unlikely," Yun said. "Supply and demand dynamics are nearing a balanced market condition."

The 30-year fixed-rate mortgage averaged 6.77% as of July 18. That's down from 6.89% one week ago and 6.78% one year ago, according to Freddie Mac.