Existing home sales declined in June, as elevated mortgage rates and affordability challenges continued to keep many buyers on the sidelines. Sales fell 2.4% from May to a seasonally adjusted annual rate of 4.09 million homes, despite inventory remaining higher than a year ago.
Even with slower sales, home values remain remarkably strong. The median existing home price reached a record $440,600, up 1.8% year over year, marking 36 consecutive months of annual price appreciation and a record high. According to NAR Chief Economist Lawrence Yun, rising home values have pushed total U.S. homeowner housing wealth to an all-time high, benefiting millions of homeowners.
Inventory has improved compared to last year but remains below the level needed for a balanced market, helping keep prices elevated. Affordability challenges persist for many first-time buyers. However, wage growth has outpaced home price growth in recent months, providing some improvement in affordability despite higher borrowing costs.
Overall, the housing market remains constrained by high mortgage rates and limited supply, but continued price appreciation has strengthened homeowner equity and housing wealth. If mortgage rates ease and inventory continues to grow, the market could see increased activity in the months ahead.
Source : https://bit.ly/4yffSTE
By: Jon Iacono