Existing home sales in the U.S. improved in July, breaking a streak of four consecutive monthly declines, according to the National Association of Realtors. Total existing home sales rose 1.3 percent month-on-month in July to a seasonally adjusted annual rate of 3.95 million. Year-over-year, however, sales fell 2.5 percent, down from 4.05 million in July 2023.
The data also revealed that three out of four major U.S. regions registered sales increases while the Midwest remained steady. Year-over-year, sales rose in the Northeast and West but retreated in the Midwest and South.
“Despite the modest gain, home sales are still sluggish. But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates,” said NAR Chief Economist Lawrence Yun.
Total housing inventory rises
Total housing inventory reached 1.33 million units by the end of July, up 0.8 percent from June and 19.8 percent annually. Meanwhile, the median existing home price for all housing types in July was $422,600, up 4.2 percent annually. All four U.S. regions posted price increases.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.49 percent as of August 15, up from 6.47 percent one week ago but down from 7.09 percent one year ago.
Single-family home sales across the U.S. grew 1.4 percent to a seasonally adjusted annual rate of 3.57 million in July, but down 1.4 percent annually. The median existing single-family home price reached $428,500 in July, up 4.2 percent from July 2023.
“The median home price of condominiums is cheaper, yet the condominium market is underperforming compared to the single-family market. Rising maintenance and insurance costs have lessened the appeal for condominiums,” Yun added.
Regional breakdown
Existing home sales in the U.S. Northeast climbed 4.3 percent month-on-month in July to an annual rate of 490,000, an increase of 2.1 percent from July 2023. The median price in the Northeast rose 8.3 percent annually to $505,100.
In the Midwest, existing home sales remained stable in July at an annual rate of 920,000 but declined 5.2 percent annually. The median price in the Midwest was $321,300, up 4.5 percent from July 2023.
Existing home sales in the South of the U.S. increased 1.1 percent from June to an annual rate of 1.79 million in July. However, they recorded a decline of 3.8 percent compared to July 2023. The median price in the South was $372,500, up 2.3 percent annually.
In the West, existing home sales rose 1.4 percent in July to an annual rate of 750,000, also up 1.4 percent from a year ago. The median price in the West was $629,500, up 3.4 percent from July 2023.
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