Existing home sales fell 2.4% in June as prices reached a record high of $440,600, NAR reported. Redfin data shows that pending sales have already recovered from the temporary drop in interest rates.
Existing home sales in June fell 2.4% from the previous month to a seasonally adjusted annual rate of 4.09 million units, according to the National Association of Realtors. Meanwhile, the median sales price increased 1.8% year over year, marking the 36th consecutive month of annual price increases of $440,600.
Redfin data, also released Thursday, shows pending home sales rose 1.3% week over week in the four weeks ending July 5. This is the highest level in six weeks, after mortgage rates briefly fell to 6.43% on July 2, the lowest level in six weeks, related to the easing of geopolitical tensions over negotiations between the United States and Iran.
Interest rates have since risen, and as of July 8, they stood at 6.68%.
This whiplash captures the state of the housing market heading into the second half of 2026. Buyers still exist, but they are moving in bursts related to the interest rate window rather than a sustained thaw.
There is an upper limit to affordable profits and that is inventory
NAR’s report said sales were up 2.8% from a year ago, despite a month-on-month decline, and Chief Economist Lawrence Yun said the labor market was weighing down. He said more than 500,000 jobs had been added since the start of the year, which “will continue to support the housing market.”
Lawrence Yun, Inman on Tour Nashville | Lawrence Yun Credit: AJ Canaria Creative Services
Technically affordability has improved. NAR’s Housing Affordability Index stood at 102.3 in June, up from 95.5 in the same period last year. The West recorded the highest increase in affordability at 8.9 percent, followed by the South at 8.3 percent.
“Median home prices are at record highs. Still, affordability is better than it was a year ago because wage growth is outpacing home price growth,” Yun said.
But Yun warned that there are limits to progress in terms of inventory. Total housing inventory fell 0.6% month-on-month to 1.56 million units (4.6 months’ worth of supply), and Yun warned that without a consistent increase in listings, “housing prices could accelerate” and undermine the affordability gains currently being generated by rising wages.
“It is important to bring more supply to the market to expand homeownership opportunities,” Yun said.
The Northeast is an outlier and the most expensive
Regional data highlights how uneven the recovery has been.
The Northeast was the only region with month-over-month sales growth, with sales volume increasing 2.1% to an annualized rate of 480,000 units, the sharpest regional price increase in the report, even though the median price of $564,800 was up 3.9% year over year.
Sales in the Midwest, South, and West all declined from May, but all three regions still recorded year-over-year increases. The South remains the region with the highest number of homes sold by far at 1.89 million units annually, but the 3.6% monthly decline in existing home sales was the largest of the four regions.
The Realtor Confidence Index below the sales numbers shows that the market is still leaning more towards step-up buyers than new entrants.
First-time buyers accounted for 33% of transactions in June, down from 35% in May, but cash sales remained stable at 25% of the market. This is well below the 29% share commanded by cash buyers a year ago and a sign that financial buyers are re-entering the market as interest rates fall from their all-time highs.
The median time a property was on the market was 28 days, down slightly from May but still up from 27 days a year ago.
What early July has already shown
Chen Zhao | Redfin
Redfin data suggests the next print run could look different. Interest rates hovering near six-week lows in early July drew buyers back into the market, even as the number of new listings fell 2.5% from the previous week to the lowest level since January. This is a supply pattern that mirrors exactly what Yun warned about in the NAR release.
“The housing market is showing some resilience as we head into the summer,” said Chen Zhao, head of economic research at Redfin. “While near-record prices and a lack of new listings are keeping many potential buyers on the sidelines, there are plenty of home seekers stepping in to boost pending sales. If this trend continues, we may see more new listings from sellers looking to take advantage of the demand and high prices.”
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