Sales of previously owned homes declined in June, marking a slowdown in the housing market as affordability issues persisted. Existing-home sales fell 2.7% from May to an annual rate of 3.39 million, representing a significant drop. The median home price reached $435,300, a 2% increase from the previous year, setting a new record. Regional declines in sales were noted in several areas, although the total supply of homes for sale increased year-over-year. The market is described as balanced after years of favoring sellers, leading to necessary adjustments for all parties involved.
Multiple years of undersupply are driving the record-high home price. Home construction continues to lag population growth. This is holding back first-time home buyers from entering the market.
The housing market is in balanced territory after almost a decade of seller-friendly conditions, meaning buyers, sellers, and the industry have to acclimate to the new norm.
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