Existing-home sales in the U.S. declined 2.7% month-over-month in June 2025, as persistently high borrowing costs and a constrained inventory environment continued to dampen market momentum. The National Association of Realtors reported an annualized sales pace of 3.93 million units for the month, holding steady year-over-year but reflecting broad regional softness.
Despite the sales slump, prices continued to climb. The median existing-home price reached $435,300 in June, a record high for the month and the 24th straight year-over-year increase.
“The historic rise in home prices is being fueled by years of underbuilding,” said Lawrence Yun, NAR’s chief economist. “That wealth creation is good news for homeowners, but it’s locking many first-time buyers out of the market.”
The average homeowner’s equity has grown by nearly $141,000 over the past five years, Yun noted, underscoring the growing wealth gap between owners and renters. Meanwhile, elevated borrowing costs are suppressing mobility across the board. Mortgage rates hovered at 6.75% as of mid-July, according to Freddie Mac, making current homeowners reluctant to trade up or relocate.
NAR estimates that a drop in rates to 6% could unlock an additional 160,000 first-time buyers, sparking a surge in transaction volume. “If rates ease in the second half, we expect more inventory movement and a broader reopening of the housing market,” Yun added.
Supply Still Trails Demand
Inventory remains lean but improved slightly year-over-year. The total number of homes on the market in June was 1.53 million — down 0.6% from May but up nearly 16% from a year earlier. That equates to a 4.7-month supply at the current sales pace, compared to 4.6 months in May and 4 months last June.
Homes are spending more time on the market. Median days on market rose to 27 days, up from 22 a year ago. Cash buyers accounted for 29% of transactions, the highest share in over a year. First-time buyers made up 30% of sales, unchanged from the previous month.
Regional Trends: West Gains Ground as Northeast Slips
Sales declined across three of four U.S. regions in June. The Northeast posted the steepest monthly drop at 8%, followed by the Midwest (-4%) and South (-2.2%). Only the West saw an uptick, with sales rising 1.4% on a monthly basis. However, year-over-year, the West and Northeast both saw declines, while the Midwest and South experienced modest gains.
Региональная разбивка
Северо-восток: Sales fell to an annual rate of 460,000 (-4.2% YoY). Median price: $543,300 (+4.2%).
Средний Запад: 950,000 annualized sales (+2.2% YoY). Median price: $337,600 (+3.4%).
Юг: 1.81 million annualized sales (+1.7% YoY). Median price: $374,500 (+0.3%).
Запад: 710,000 annualized sales (-4.1% YoY). Median price: $636,100 (+1%).
Market Segments: Single-Family Weakens, Condos Hold Flat
Sales of single-family homes dropped 3% in June to an annualized pace of 3.57 million. Despite the slowdown, the segment posted a slight 0.6% gain over last year. Prices for single-family properties reached $441,500, up 2% year-over-year.
Condo and co-op transactions were flat at 360,000 annualized units, down 5.3% from June 2024. The median condo price rose slightly to $374,500, a 0.8% increase.
Investor Retreat, Rising Cash Sales
Investor activity slowed notably, with individual investors and second-home buyers accounting for just 14% of all transactions–down from 17% in May and the lowest share since September 2022. Meanwhile, cash deals surged, suggesting wealthier buyers are still active despite higher interest rates.
Distressed sales remained limited at just 3% of all transactions, underscoring the overall resilience of the housing market.
Market Outlook
With inflation easing and rate cuts on the horizon, analysts expect a possible thaw in the market later this year. “If mortgage rates dip meaningfully, we could see a wave of pent-up demand hit the market–particularly from renters ready to make the leap,” said Yun.
Until then, affordability and access remain major hurdles, especially for younger and first-time buyers. While homeowners see their equity rise, a growing segment of Americans remains locked out of homeownership altogether.
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