Home sales declined in June as prices hit new all-time high
After jumping in May, sales last month fell 2.7% to a seasonally adjusted annual rate of 3.93 million, according to National Association of Realtors data released on Wednesday.
Sales came in worse than expected; economists had forecast a smaller decline to a seasonally adjusted annual rate of 4 million homes.
Spring is historically the busiest time of year for home sales, but all signs point to 2025 being another subdued year. June sales typically reflect homes that went under contract in April or May — the market's busy period. But mortgage rates have remained in the high 6% area for much of the year while prices hit a new record, straining affordability for buyers even when the labor market and economy look healthy.
Read more: Historical mortgage rates: How do they compare to current rates?
'The mismatch — more jobs, fewer home sales — is really coming from the affordability challenges, specifically higher mortgage rates,' Lawrence Yun, the NAR's chief economist, said on a conference call to discuss the data.
Year over year, the median existing home price rose 2% to a new record high of $435,300, according to NAR data.
Most of the country saw a sales slump in June. The steepest declines came in the pricey Northeast where buyers still generally outnumber sellers, and home prices are rising the fastest. There, sales dropped 8% from a month earlier, while prices were up 4.2% in the last year to an average of $543,300.
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Sales contracted 4% month over month in the Midwest where for-sale inventory is also more constrained. Prices there were up 3.4% since June 2024.
Only the West eked out a sales gain in June, rising 1.4% from May, though sales in that region are down 4.1% from a year earlier.
Learn more: What's the best time of year to buy a house?
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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