U.S. existing home sales unexpectedly declined in June, inventory improvement was limited, and home prices hit a record high.

```

The recent recovery momentum in the US existing home market has reversed. Dragged down by high mortgage rates, existing home sales declined month-over-month in June, and housing affordability remains the core obstacle restraining home buying demand.

Data released Thursday by the National Association of Realtors (NAR) showed that the annualized rate of existing home sales in June dropped to 4.09 million units, down 2.4% month-over-month and lower than the median forecast of 4.2 million units from economists surveyed by Bloomberg. Meanwhile, the median sales price of existing homes in June rose 1.8% year-over-year, reaching a record $440,600.

NAR Chief Economist Lawrence Yun said, "Monthly existing home sales data fluctuates with minor changes in mortgage rates, reflecting buyers' high sensitivity to affordability conditions." He also noted that continued growth in the job market will support the housing market.

This sales downturn interrupts the upward trend seen in the US existing home market in previous months. Currently, the 30-year fixed mortgage rate hovers around 6.6%. Although the NAR housing affordability index has slightly improved compared to a year ago, it remains at its lowest level since August 2025.

Sales Under Pressure Across the Board, Southern Region Drag Most Noticeable

Regional performance was markedly differentiated, with the southern region—the largest existing home sales market in the country—bearing the brunt. The annualized rate of existing home sales in the South fell 3.6% in June to 1.89 million units, a decline greater than the national average.

Sales in the Midwest and West also declined, with only the Northeast seeing growth.

The participation of first-time homebuyers also shrank. In June, first-time buyers accounted for 33% of total sales, down from 35% in May, reflecting the continued squeeze exerted by affordability pressures on entry-level buyers.

Limited Inventory Improvement, Prices Reach Record Highs

Inventory conditions failed to provide effective relief. In June, the inventory of existing homes for sale was 1.56 million units, up 1.3% year-over-year, but a slight month-over-month decrease for the first time this year. Lawrence Yun characterized this year-over-year increase as "insignificant."

"We need to see increases of 30% or 40%," he said, "but there’s simply no sign of that yet."

Meanwhile, price pressures have not abated. The median sales price of $440,600 set a historic high, but the 1.8% year-over-year increase is far below the rate from two years ago, indicating that upward price momentum has clearly slowed.

Persistent Rate Stalemate, Uncertain Market Outlook

The core issue remains interest rates. Mortgage rates around 6.6% are discouraging many potential buyers, and whether the previous recovery momentum in existing home contract volume—which typically leads sales volume by one to two months—can continue, remains to be seen.

Lawrence Yun is optimistic about the job market, believing that sustained employment growth will provide a floor for housing demand.

However, until interest rate trends become clearer, affordability pressures are expected to continue to dominate the market, meaning that a substantial recovery in existing home sales faces considerable uncertainty.

Risk Warning and DisclaimerThe market is risky; investments should be made cautiously. This article does not constitute personal investment advice, nor does it take into account the unique investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article suit their particular circumstances. Investments based on this are solely at your own risk. ```