Existing-home sales fell 5.9% in July to a seasonally adjusted annual rate of 4.81 million, according to the National Association of Realtors (NAR). Sales fell year-over-year, down 20.2% from July 2021. First-time buyers were responsible for 29% of sales in July, down from 30% in July and down from 30% in July 2021.
“The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June,” said NAR Chief Economist Lawrence Yun. “Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers.”
The total housing inventory in July was 1.31 million units, up 4.8% from June’s inventory and unchanged from one year ago. The median home price was $403,000, up 10.8% from July 2021 ($364,600), as prices rose in every region. This marks 125 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 July, essentially unchanged from the June 2022 and July 2021.
Read the NAR release.