Sales of previously occupied homes in the United States rose in July, driven by a slight decline in mortgage rates and a slower pace of home price growth. According to the National Association of Realtors, existing home sales increased by 2% from June, reaching a seasonally adjusted annual rate of 4.01 million units. This marks a 0.8% rise compared to the same month in the previous year, exceeding economists’ expectations of a 3.92 million sales pace, as reported by FactSet.
The national median sales price for homes continued to rise, recording its 25th consecutive month of year-over-year growth. However, the rate of increase has slowed significantly. In July, the median sales price inched up by 0.2% from July 2022 to $422,400.
Market Trends and Challenges
The U.S. housing market has faced challenges since 2022, when mortgage rates began to climb from historically low levels. Sales of previously occupied homes dropped to their lowest level in nearly three decades last year. The spring homebuying season, typically the most active period for the housing market, was subdued this year due to persistently high mortgage rates, which deterred many potential buyers.
Affordability remains a significant obstacle for many aspiring homeowners, particularly following years of substantial increases in home prices. The slight easing of mortgage rates in July provided welcome relief for some buyers, contributing to the uptick in sales.
As the market adjusts to this new landscape, many stakeholders will be closely monitoring how these trends evolve in the coming months. The combination of increased inventory—the highest in five years—and slower price growth may signal a shift in market dynamics, offering renewed opportunities for buyers who had previously been sidelined.
With the financial landscape continuing to shift, these developments in the housing market will be crucial for both current homeowners and those looking to enter the market.
