Sales of existing homes slowed in June as home prices reached a record high, underscoring ongoing affordability challenges for buyers despite modest improvements in housing inventory.
According to the National Association of Realtors, existing home sales declined 2.4% from May to a seasonally adjusted annual rate of 4.09 million homes. While sales were up 2.8% compared to June 2025, they fell below economists’ expectations and remain well below the historical average of approximately 5.2 million annual sales.
The slowdown comes as elevated mortgage rates continue to weigh on the housing market. Although rates remain lower than they were a year ago, they have generally increased in recent months, limiting affordability for many prospective buyers.
At the same time, home prices continued to climb. The national median existing-home sales price rose 1.8% from a year earlier to a record $440,600, marking the 36th consecutive month of year-over-year price increases.
First-time homebuyers accounted for 33% of all purchases in June, down slightly from May but higher than the same month last year. Even so, the share remains below the historical average of about 40%, reflecting the financial hurdles facing many new buyers.
The U.S. housing market has struggled to regain momentum since mortgage rates began rising in 2022. Existing home sales remained near a 30-year low last year, and through the first half of 2026, sales are up just 0.7% compared to the same period a year earlier.
Limited housing supply continues to be a major factor supporting home prices. At the end of June, approximately 1.56 million homes were listed for sale nationwide, a slight increase from a year ago but still well below pre-pandemic inventory levels. At the current pace of sales, that represents a 4.6-month supply of homes, short of the five to six months generally considered a balanced market.
Housing trends also continue to vary by region. Home prices have softened in parts of the South and West, while many markets in the Midwest and Northeast continue to experience stronger price growth.
Economists say increasing the nation’s housing supply remains critical to improving affordability and creating more opportunities for first-time and middle-income homebuyers.
