Affordability constraints have continued to limit homebuying activity this summer, with existing-home sales falling 3.3% month-over-month nationwide as of the 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 decreased by 11.7% for residential homes and 9.8% for townhouse/condo homes. Pending sales decreased by 0.2% for residential homes and 1.9% for townhouse/condo homes. Inventory decreased by 19.6% for residential homes and 16.9% for townhouse/condo homes.
Median sales price increased 3.5% to $300,000 for residential homes and 7.9% to $219,000 for townhouse/condo homes. Days on market increased 21.1% for residential homes and 35% for townhouse/condo homes. Months supply of inventory remained flat for residential homes but increased by 7.7% for townhouse/condo properties.
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.