Existing-home sales dropped for a third straight month in July, falling 2.2% compared with June and 16.6% compared with July 2022 to a seasonally adjusted annual rate of 4.07 million, according to the National Association of Realtors (NAR).
Among the four major U.S. regions, sales grew in the West but faded in the Northeast, Midwest and South. All four regions registered year-over-year sales declines.
Lawrence Yun, chief economist for NAR says “two factors are driving current sales activity – inventory availability and mortgage rates.”
“Unfortunately, both have been unfavorable to buyers,” Yun says in a statement.
As of the end of July, there were about 1.11 million existing-homes available for sale in the U.S. That’s up 3.7% from June but down 14.6% from one year ago.
That’s about a 3.3-month supply at the current sales pace.
The median existing-home price for all housing types in July was $406,700, an increase of 1.9% from July 2022.
Prices rose in the Northeast, Midwest and South but were unchanged in the West, according to NAR’s data.
“Most homeowners continue to enjoy large wealth gains from recent years with little concern about home price declines,” Yun says. “However, many renters are concerned as they’re facing growing affordability challenges because of high interest rates.”
Properties remained on the market for an average of 20 days in July, up from 18 days in June and 14 days in July 2022.
Seventy-four percent of homes sold in July were on the market for less than a month.
Photo: nattanan23