Approximately 30% more first-time homebuyers (FTHB) purchased homes last June, as compared to June 2024. FTHBs were responsible for about 29% of all existing home sales this June, according to the National Association of Realtors (NAR).
Existing-home sales grew 1.3% in July to a seasonally adjusted annual rate of 3.95 million, putting an end to a four-month sales decline that began in March. However, sales slipped 2.5% from one year ago.
The median existing-home sales price rose by 4.2% from July 2023 to $422,600, marking the 13th consecutive month of year-over-year price gains.
More homes were sitting stagnant on the market at the end of July, with unsold inventory up by 0.8% as compared with the month prior. According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 24 days in July, up from 22 days in June and 20 days in July 2023.
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.
Total existing-home sales, including condominiums, rose 1.3% from June but fell 2.5% lower than June 2023.
“Despite the modest gain, home sales are still sluggish,” NAR Chief Economist Lawrence Yun pointed out. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”
There were a total of 1.33 million units for sale at the end of July, up 0.8% from June and 19.8% from one year ago. The median existing home price for all housing types in July was $422,600, up 4.2% from one year ago, when it was $405,600.
All-cash sales accounted for 27% of transactions in July, down from 28% in June but up from 26% one year ago. Individual investors or second-home buyers, who make up many cash sales, purchased 13% of homes in July, down from 16% in both June 2024 and July 2023. Single-family home sales grew 1.4% to a seasonally adjusted annual rate of 3.57 million in July, down 1.4% from the previous year.
Existing condominium and co-op sales in July were identical to June, down 11.6% from one year ago. The median existing condo price was $367,500 in July, up 2.7% from the prior year.
“The median home price of condominiums is cheaper, yet the condominium market is underperforming compared to the single-family market,” Yun said. “Rising maintenance and insurance costs have lessened the appeal for condominiums.”
Regionally, there were price increases across the board in July.
Existing-home sales in the Northeast in July climbed 4.3% from June and 2.1% year-over-year. The median price in the Northeast was $505,100, up 8.3% from last year.
In the Midwest, existing-home sales were down 5.2% from the previous year, staying steady from June. The median price in the Midwest was $321,300, up 4.5% from July 2023. Existing-home sales in the South increased 1.1% from June to an annual rate of 1.79 million in July, down 3.8% from one year before. The median price in the South was $372,500, up 2.3% from one year earlier.
In the West, existing-home sales rose 1.4% in July to an annual rate of 750,000, also up 1.4% from a year ago. The median price in the West was $629,500, up 3.4% from July 2023.
