Existing-home sales were at a seasonally adjusted annual rate of 4.01 million in July, an increase of 2.0% compared with June and an increase of 0.8% compared with July 2024, according to the National Association of Realtors.
Regionally, and month-over-month, sales increased in the Northeast, South and West, and fell in the Midwest.
Year-over-year, sales rose in the South, Northeast, and Midwest, and fell in the West.
Inventory increased to 1.55 million units. That’s up 0.6% compared with June and up 15.7% from July 2024.
It was about a 4.6-month supply of unsold inventory, down from 4.7 months in June and up from 4 months in July 2024.
As a result of the increased inventory, home price appreciation continued to slow: The median existing-home sales price in July was $422,400, which is up only 0.2% (for all housing types) from one year ago.
“The ever-so-slight improvement in housing affordability is inching up home sales,” says Lawrence Yun, chief economist for NAR, in a statement. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices. Condominium sales increased in the South region, where prices had been falling for the past year.”
“Near-zero growth in home prices suggests that roughly half the country is experiencing price reductions,” Yun says. “Overall, homeowners are doing well financially. Only 2% of sales were foreclosures or short sales – essentially a historic low. The market’s health is supported by a cumulative 49% home price appreciation for a typical American homeowner from pre-COVID July 2019 to July this year.”
“Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price,” Yun adds. “Current inventory is at its highest since May 2020, during the COVID lockdown.”
Nationally, existing homes for sale spent an average of 28 days on the market, up from 27 days in June and up from 24 days in July 2024.
About 31% of transactions were cash sales, up from 29% a month ago and 27% in July 2024.
Photo: Roger Starnes Sr