Current:Home > MarketsUS home sales fell in June to slowest pace since December amid rising mortgage rates, home prices -Lighthouse Finance Hub
US home sales fell in June to slowest pace since December amid rising mortgage rates, home prices
View
Date:2025-04-17 20:47:54
LOS ANGELES (AP) — The nation’s housing slump deepened in June as sales of previously occupied homes slowed to their slowest pace since December, hampered by elevated mortgage rates and record-high prices.
Sales of previously occupied U.S. homes fell 5.4% last month from May to a seasonally adjusted annual rate of 3.89 million, the fourth consecutive month of declines, the National Association of Realtors said Tuesday.
Existing home sales were also down 5.4% compared with June of last year. The latest sales came in below the 3.99 million annual pace economists were expecting, according to FactSet.
Despite the pullback in sales, home prices climbed compared with a year earlier for the 12th month in a row. The national median sales price rose 4.1% from a year earlier to $426,900, an all-time high with records going back to 1999.
Home prices rose even as sales slowed and the supply of properties on the market climbed to its highest level since May 2020.
All told, there were about 1.32 million unsold homes at the end of last month, an increase of 3.1% from May and up 23% from June last year, NAR said.
That translates to a 4.1-month supply at the current sales pace. In a more balanced market between buyers and sellers there is a 4- to 5-month supply.
While still below pre-pandemic levels, the recent increase in homes for sale suggests that, despite record-high home prices, the housing market may be tipping in favor of homebuyers.
For now, sellers are still benefiting from a tight housing market inventory.
Homebuyers snapped up homes last month typically within just 22 days after the properties hit the market. And 29% of those properties sold for more than their original list price, which typically means sellers received offers from multiple home shoppers.
“Right now we’re seeing increased inventory, but we’re not seeing increased sales yet,” said Lawrence Yun, the NAR’s chief economist.
The U.S. housing market has been mired in a slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. Existing home sales sank to a nearly 30-year low last year as the average rate on a 30-year mortgage surged to a 23-year high of 7.79%, according to mortgage buyer Freddie Mac.
The average rate has mostly hovered around 7% this year — more than double what it was just three years ago —- as stronger-than-expected reports on the economy and inflation have forced the Federal Reserve to keep its short-term rate at the highest level in more than 20 years.
veryGood! (98361)
Related
- What polling shows about Minnesota Gov. Tim Walz, Harris’ new running mate
- Team USA's Rebecca Hart, Fiona Howard win gold in Paralympics equestrian
- Judge Mathis Addresses Cheating Rumors Amid Divorce From Linda Mathis
- Tamra Judge’s Mom Roasts Her Over Her Post Cosmetic Procedure Look on Her Birthday
- IOC's decision to separate speed climbing from other disciplines paying off
- US Open: No. 1 Jannik Sinner gets past Tommy Paul to set up a quarterfinal against Daniil Medvedev
- How Hailey Bieber's Rhode Beauty Reacted to Influencer's Inclusivity Critique
- Inter Miami star Luis Suarez announces retirement from Uruguay national team
- New Orleans mayor’s former bodyguard making first court appearance after July indictment
- Joey Chestnut vs. Kobayashi: Chestnut sets record in winning hot dog eating rematch
Ranking
- House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
- Browns sign 20-year stadium rights deal with Huntington Bank as they position for possible new home
- Krispy Kreme marks Barbie's 65th anniversary with pink, sparkly doughnuts
- Shohei Ohtani back in Anaheim: Dodgers star chases 50-50 before first postseason trip
- US wholesale inflation accelerated in November in sign that some price pressures remain elevated
- Donald Trump Speaks Out Nearly 2 Months After Assassination Attempt
- Sheryl Swoopes fires back at Nancy Lieberman in Caitlin Clark dispute
- Adele reveals she's taking an 'incredibly long' break from music after Las Vegas residency ends
Recommendation
51-year-old Andy Macdonald puts on Tony Hawk-approved Olympic skateboard showing
Can dogs eat watermelon? Ways to feed your pup fruit safely.
US closes 5-year probe of General Motors SUV seat belt failures due to added warranty coverage
How Mia Farrow Feels About Actors Working With Ex Woody Allen After Allegations
Travis Hunter, the 2
Real Housewives of Beverly Hills Star Kyle Richards Says This $29.98 Bikini Looks Like a Chanel Dupe
Florida man sentenced for attacking Jewish teens
George Clooney calls Joe Biden 'selfless' for dropping out of 2024 presidential race