Existing-home sales fell 5.4% in June to a seasonally adjusted annual rate of 5.12 million, according to the National Association of Realtors (NAR). Sales fell year-over-year, down 14.2% from June 2021. First-time buyers were responsible for 30% of sales in June, up from 27% in May and down from 31% in June 2021.
“Falling housing affordability continues to take a toll on potential home buyers,” said Lawrence Yun, NAR’s chief economist. “Both mortgage rates and home prices have risen too sharply in a short span of time. Finally, there are more homes on the market. Interestingly though, the record-low pace of days on market implies a fuzzier picture on home prices. Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
The total housing inventory in June was 1.26 million units, up 9.6% from May’s inventory and a 2.4% increase from one year ago (1.23 million). The median home price was $416,000, up 13.4% from June 2021 ($366,900), as prices rose in every region. This marks 124 consecutive months of year-over-year gains, the longest-running streak on record.
Distressed sales—foreclosures and short sales—represented less than 1% of sales in June, essentially unchanged from the May 2022 and June 2021.
Read the NAR release.