United States existing-home sales receded in July, according to the National Association of Realtors (NAR). The West was the only one among the four major U.S. regions where sales grew while the Northeast, Midwest and South all saw year-over-year sales declines.
Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — waned 2.2 percent from June to a seasonally adjusted annual rate of 4.07 million in July. Year-over-year, sales slumped 16.6 percent (down from 4.88 million in July 2022).
“Two factors are driving current{mprestriction ids="1,3"} sales activity: inventory availability and mortgage rates,” said Lawrence Yun, NAR chief economist. “Unfortunately, both have been unfavorable to buyers.”
Total housing inventory registered at the end of July was 1.11 million units, up 3.7 percent from June but down 14.6 percent from one year ago (1.3 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 3.1 months in June and 3.2 months in July 2022.
The median existing-home price for all housing types in July was $406,700, an increase of 1.9 percent from July 2022 ($399,000). Prices rose in the Northeast, Midwest and South but were unchanged in the West.
“Most homeowners continue to enjoy large wealth gains from recent years with little concern about home price declines,” Yun said. “However, many renters are concerned as they’re facing growing affordability challenges because of high interest rates.”
According to the Realtors Confidence Index, properties typically remained on the market for 20 days in July, up from 18 days in June and 14 days in July 2022. Seventy-four percent of homes sold in July were on the market for less than a month.
First-time buyers were responsible for 30 percent of sales in July, up from 27 percent in June and 29 percent in July 2022.
All-cash sales accounted for 26 percent of transactions in July, identical to June but up from 24 percent in July 2022.
Individual investors or second-home buyers, who make up many cash sales, purchased 16 percent of homes in July, down from 18 percent in June but up from 14 percent one year ago.
Distressed sales — foreclosures and short sales — represented 1 percent of sales in July, virtually unchanged from Juneand the previous year.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.09 percent as of Aug. 17. That’s up from 5.13 percent one year ago.{/mprestriction}
