Existing home sales during July recorded a 2% month-over-month upswing to a seasonally adjusted annual rate of 4.01 million, according to the National Association of Realtors (NAR). On a year-over-year measurement, sales were up by 0.8%.
The sales increase was matched with a 0.6% month-over-month increase in unsold inventory to 1.55 million units, equal to 4.6 months’ supply. The unsold inventory was also up by 15.7% from the 1.34 million in July 2024. The 4.6-month supply of unsold inventory in July was also down slightly from 4.7 months in June and up from 4 months in July 2024.
On a regional measurement, month-over-month sales increased in the Northeast, South, and West, and fell in the Midwest. For year-over-year sales, activity was up in the South, Northeast, and Midwest but fell in the West.
The $422,400 median existing-home price for all housing types last month was up by 0.2% from the $421,400 price set one year ago, marking the 25th consecutive month of year-over-year price increases.
“The ever-so-slight improvement in housing affordability is inching up home sales,” said NAR Chief Economist Lawrence Yun. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices. Condominium sales increased in the South region, where prices had been falling for the past year.”
Yun added, “Near-zero growth in home prices suggests that roughly half the country is experiencing price reductions. Overall, homeowners are doing well financially. Only 2% of sales were foreclosures or short sales – essentially a historic low. The market’s health is supported by a cumulative 49% home price appreciation for a typical American homeowner from pre-Covid July 2019 to July this year.”
