Source: Fortune
Summary
Existing home sales in the US fell 2.4% in June from May, but home prices continued to rise, with the median sales price reaching an all-time high of $440,600. The National Association of Realtors reported that sales have been sluggish due to higher mortgage rates and a shortage of homes for sale. First-time buyers accounted for 33% of home purchases, down from 35% in May. The US housing market has been in a slump since 2022, with sales of previously occupied homes essentially flat last year.
Our Reading
The numbers tell one story. Existing home sales fell short of expectations, with a 2.4% drop in June. Home prices continued to rise, with the median sales price reaching an all-time high. The shortage of homes for sale remains a major challenge for prospective homebuyers. First-time buyers are struggling to enter the market, accounting for only 33% of home purchases. The US housing market remains in a slump, with sales stuck at a 30-year low.
Lawrence Yun, NAR’s chief economist, said “the affordability is a major challenge for people who want to become homeowners, which is the reason why we need more supply.” The housing market is showing a regional price split, with list prices falling in the West and South, but rising in the Midwest and Northeast.
The announcement sounds familiar. The US housing market has been struggling with affordability and supply issues for years, and it seems that the situation is not improving.
Without a doubt, the affordability is a major challenge for people who want to become homeowners.
The housing market enters a familiar phase, with home prices continuing to rise and sales remaining sluggish.
The numbers tell one story, but the reality is that many would-be homebuyers are frozen out of the market due to soaring home prices and a chronic shortage of homes for sale.
Author: Evan Null
