Existing-home sales declined 2.7% in June as prices hit record highs, according to the National Association of Realtors.
The total housing inventory hit 1.53 million units, down 0.6% from May but up 15.9% from June 2024 (1.32 million). The U.S. has a 4.7-month supply of unsold inventory, up from 4.6 months in May and four months in June 2024. A six-month supply is generally considered a balanced market.
The median sales price for existing homes stood at $435,300, up 2% from a year ago ($426,900). This was a record high for June and the 24th consecutive month of year-over-year price increases.
“Multiple years of undersupply are driving the record high home price,” NAR Chief Economist Lawrence Yun said. “Home construction continues to lag population growth. This is holding back first-time home buyers from entering the market. More supply is needed to increase the share of first-time homebuyers in the coming years even though some markets appear to have a temporary oversupply at the moment.”
President Donald Trump blamed Federal Reserve Chairman Jerome Powell for holding interest rates steady.
“Housing in our Country is lagging because Jerome “Too Late” Powell refuses to lower Interest Rates,” Trump wrote Wednesday in a Truth Social post. “Families are being hurt because Interest Rates are too high, and even our Country is having to pay a higher Rate than it should be because of “Too Late.” Our Rate should be three points lower than they are, saving us $1 Trillion per year (as a Country). This stubborn guy at the Fed just doesn’t get it — Never did, and never will. The Board should act, but they don’t have the Courage to do so!”
Trump has been pushing Powell to lower interest rates for months. In June, the Federal Open Markets Committee kept the central bank’s federal funds rate at a target of 4.25% and 4.5%. Trump wants the rate to be 1%.
The Fed has taken a wait-and-see approach on interest rates, citing the president’s tariffs.
Yun said mortgage rates were a factor.
“High mortgage rates are causing home sales to remain stuck at cyclical lows,” Yun said. “If the average mortgage rates were to decline to 6%, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners.”
Yun added: “If mortgage rates decrease in the second half of this year, expect home sales to increase across the country due to strong income growth, healthy inventory, and a record-high number of jobs.”
