July home sales rise as prices approach inflection point
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Inventory of existing homes is now at the highest level since May 2020 — and it's clearly taking the pressure off prices.
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real estate
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August 21, 2025
04:03 PM
CNBC
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A "For Sale" sign outside a house in the Capitol Hill neighborhood of Washington, DC, US, on Tuesday, Aug. 12, 2025
Al Drago | Bloomberg | Getty ImagesSales of previously owned s rose 2% in July compared with June to 4.01 million units, on a seasonally adjusted, annualized basis, according to the National Association of Realtors
Housing analysts had been expecting a slight decline
Sales were 0.8% higher than July 2024.These sales are counted by closings, so s ly signed in May and June, when the average rate on the 30-year fixed mortgage was in decline
That rate exceeded 7% briefly in May and then June at 6.67%, according to Mortgage News Daily.There were 1.55 million s for sale at the end of July, an increase of 15.7% from the same month last year
At the current sales pace, that represents a 4.6-month supply
A six-month supply is considered balanced between buyer and seller.Inventory is now at the highest level since May 2020 but still well below pre-Covid years.More inventory is ly taking the pressure off prices
The median price of an existing sold in July was $422,400, an increase of 0.2% from the same month a year earlier and a record high price for the month of July
Prices have been higher annually for the last 25 months, but the market may now be at an inflection point."The ever-so-slight imvement in housing affordability is inching up sales," said Lawrence Yun, NAR's chief economist. "Wage growth is now comfortably outpacing price growth, and buyers have more choices."Get perty Play directly to your inboxCNBC's perty Play with Diana Olick covers new and evolving opportunities for the real estate investor, dered weekly to your inbox. here to get access today.Yun noted that condominium sales increased in the South, where prices have been falling for the past year.Activity continues to be strongest on the higher end of the market
Sales of s priced over $1 million rose 7.1% year over year, while sales priced between $100,000 and $250,000 declined 0.1%
Sales of s priced below $100,000 dropped 8%.It is now taking longer for s to sell
The average in July sold in 28 days, up from 24 days the year before
First-time buyers also fell off slightly, representing 28% of sales, down from 30% in June and 29% in July 2024.Investors made up 20% of all transactions, up from 13% in July 2024
This could be due to the increase in supply.With mortgage rates still relatively high, the of all-cash buyers increased to 31% of transactions from 27% the year before."This is unusually high," said Yun, noting stock market wealth or housing wealth could be contributing factors.Don’t miss these insights from CNBC Morgan Stanley says nu power is gaining momentum, recommends these stocksWells Fargo hikes S&P 500 target as U.S. tariffs get delayed againMorgan Stanley maintains bullish stance on Nvidia heading into earnings, raises price targetWhy UBS just raised its gold forecast again as the precious metal hovers near record high
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