Existing home sales fell 2.7% in June 2025, according to the National Association of REALTORS®. Sales dropped month-over-month in the Northeast, Midwest, and South, but rose slightly in the West. Compared to last year, sales declined in the Northeast and West, but increased in the Midwest and South.
NAR Chief Economist Lawrence Yun noted that median home prices hit record highs, with the average homeowner’s wealth growing by $140,900 over the past five years. He attributed rising prices to years of undersupply and lagging construction, which are limiting first-time buyer opportunities.
Yun said high mortgage rates are keeping sales at cyclical lows, but a drop in rates to 6% could bring 160,000 new first-time buyers and boost market activity. He expects potential sales growth later in 2025 if rates fall, supported by strong income gains, healthy inventory, and a robust job market.
Even though existing homes sales dipped, equity is continuing to increase for homeowners. And even with higher rates it is still proven that entering the housing market, in most areas, continues to be a sound investment.
Source : https://bit.ly/4kUeA8A
By: Jon Iacono