According to the latest report by the National Association of Realtors (NAR), sales of previously owned homes increased 2% in July compared with June to 4.01 million units, on a seasonally adjusted, annualized basis.
The report showed that, at the end of July, there were 1.55 million homes for sale, representing a 15.7% rise compared to the same period last year. Based on current sales, this equates to a 4.6-month supply, which is below the 6-month threshold regarded as a healthy market balance.
NAR reported that the median existing-home price for all housing types was $422,400, up 0.2% from one year ago ($421,400), marking the 25th consecutive month of year-over-year price gains.
According to the latest figures, the market remains strongest at the higher end. Sales of homes priced over $1 million increased by 7.1% year over year, while sales of homes priced between $100,000 and $250,000 declined by 0.1%. Sales of homes priced below $100,000 fell by 8%.
NAR Chief Economist Lawrence Yun stated “The ever-so-slight improvement in housing affordability is inching up home sales. Wage growth is now comfortably outpacing home price growth, and buyers have more choices. Condominium sales increased in the South region, where prices had been falling for the past year.”
“Near-zero growth in home prices suggests that roughly half the country is experiencing price reductions. Overall, homeowners are doing well financially. Only 2% of sales were foreclosures or short sales – essentially a historic low. The market’s health is supported by a cumulative 49% home price appreciation for a typical American homeowner from pre-COVID July 2019 to July this year,” Yun continued.
“Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price. Current inventory is at its highest since May 2020, during the COVID lockdown,” he concluded.
NAR reported that investors accounted for 20% of all transactions, up from 13% in July 2024, driven by increased supply.
By CEO NA Editorial Staff
