Existing U.S. home sales rose 2% in July from June to a seasonally adjusted annual rate of 4.01 million units, and were up 0.8% year-over-year. The national median sales price increased 0.2% from a year earlier to $422,400, the smallest annual gain since June 2023 but the highest July on record since 1999. Mortgage rates modestly pulled back, inventory reached a five-year high, and slowing price growth improved affordability slightly as wage growth outpaced home price increases. First-time buyers made up 28% of sales, down from 30% in June and below the historical 40% share.
Sales of previously occupied U.S. homes rose in July as homebuyers were encouraged by a modest pullback in mortgage rates, slowing home price growth and the most properties on the market in over five years. Existing home sales rose 2% last month from June to a seasonally adjusted annual rate of 4.01 million units, the National Association of Realtors said Thursday. Sales edged up 0.8% compared with July last year.
Home prices rose on an annual basis for the 25th consecutive month, although the rate of growth continued to slow. The national median sales price inched up just 0.2% in July from a year earlier to $422,400. That was the smallest annual increase since June 2023. Even so, the median home sales price last month is the highest for any previous July, based on data going back to 1999.
"The ever-so-slight improvement in housing affordability is inching up home sales," said Lawrence Yun, NAR's chief economist. "Wage growth is now comfortably outpacing home price growth, and buyers have more choices." The U.S. housing market has been in a sales slump since 2022, when mortgage rates began climbing from historic lows. Sales of previously occupied U.S. homes sank last year to their lowest level in nearly 30 years.
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