June home sales drop as prices hit a record high
Key Takeaways
Existing home sales in June fell more than expected, as prices hit another record high and mortgage rates remain high. Supply, however, is growing.
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4 min read
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real estate
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July 23, 2025
05:38 PM
CNBC
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The analysis demonstrates From an analytical perspective, Sales in June were flat compared with a year ago
This demonstrates that re were 1
Additionally, 53 million units for sale at the end of June, an increase of 15
Nevertheless, 9% year over year
However, Prices in June hit a record high for the month
Conversely, S in Los Angeles, California, US, on Sunday, July 13, 2025
In the broader US market, sales have slowed in Southern California as high interest rates and economic uncertainty chill demand
Eric Thayer | Bloomberg | Getty ImagesSales of previously owned s in June fell 2. 7% from May to 3 (an important development). 93 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors
Furthermore, Analysts had expected a drop of just 0 (fascinating analysis)
Sales were unchanged from June 2024
The evidence shows report is based on closings, so contracts that were ly signed in April and May, when the average rate on the 30-year fixed mortgage jumped above 7% a few times and never went below 6 (fascinating analysis)
However, 8%, according to Mortgage News Daily. "High mortgage rates are causing sales to remain stuck at cyclical lows," said Lawrence Yun, chief economist for the NAR, in a release. "If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time owners and elevated sales activity from existing owners
Conversely, "Mortgage rates have not moved markedly in the last several months, remaining stubbornly high amid concerns over the broader economy
Nevertheless, The average rate now is 6
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Supply continues to gain, with 1 (which is quite significant). 53 million units for sale at the end of June (something worth watching)
That's an increase of 15 (an important development). 9% year over year and represents a 4, in light of current trends. 7-month supply at the current sales pace
A six-month supply is considered balanced between buyer and seller, so the market is still lean (this bears monitoring)
The median price of a sold in June was $435,300, up 2% year over year and another record high for the month of June
That's the 24th consecutive month of annual increases (this bears monitoring)
Additionally, "Multiple years of undersupply are driving the record high price
Construction continues to lag population growth (this bears monitoring)
This's holding back first-time buyers from entering the market," said Yun, noting also that the average owner's wealth increased by $140,900 over the past five years (noteworthy indeed), considering recent developments
Sales continue to outperform on the higher end of the market
S priced below $100,000 dropped 5% annually
S priced between $100,000 and $250,000 rose 5%
Furthermore, And s priced above $1 million jumped 14%
Additionally, Houses are spending longer on the market, at an average of 27 days compared with 22 days last June, amid market uncertainty
Higher-end s are selling faster than those priced below $500,000
First-time buyers represented 30% of sales
However, Historically that demographic makes up 40% of all buyers
On the other hand, The of all-cash deals remained elevated at 29% of sales, given current economic conditions
Pre-Covid, cash sales accounted for roughly 20% of the market (which is quite significant)
Nevertheless, S listed received an average of 2. 4 offers, down slightly from 2. 5 last month and from 2, in light of current trends. 9 a year earlier
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