After reaching a five-month high last month, existing home sales pulled back in June as record-high home prices and elevated mortgage rates weighed on buyers. This monthly volatility reflects the sensitivity of home buyer demand to mortgage rate changes. Mortgage rates, though lower than a year ago, have increased more than 50 basis points since the Iran war began in late February and remain stuck around 6.5% in recent weeks. Energy shock has reaccelerated inflation, which has outpaced wage growth, further weighing on housing affordability.
Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 2.4% to a seasonally adjusted annual rate of 4.09 million in June, according to the National Association of Realtors (NAR). On a year-over-year basis, sales were 2.8% higher from a year ago.
The existing home inventory level was 1.56 million units in June, down 0.6% from May but up 1.3% from a year ago. At the current sales rate, June unsold inventory sits at a 4.6-months’ supply, up from 4.5-months in May and unchanged from a year ago. Inventory between 4.5 to 6 months’ supply is generally considered a balanced market.
Homes stayed on the market for a median of 28 days in June, down from 29 days in the previous month but up from 27 days in June 2025.
The first-time buyer share was 33% in June. The share was down from 35% in May but up from 30% a year ago.
The June all-cash sales share was 25% of transactions, unchanged from last month but down from 29% in June 2025. All-cash buyers are less affected by changes in interest rates.
The June median sales price of all existing homes was $440,600, up 1.8% from last year. This marks the 36th consecutive month of year-over-year increases and reaches an all-time high. The median condominium/co-op price in June was up 1.6% from a year ago at $380,000. Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2026.
Existing home sales in June were mixed across the four major regions. Sales fell in the South (-3.6%), Midwest (-3.0%) and West (-1.3%) but rose in the Northeast (+2.1%). On a year-over-year basis, sales increased in the South (+3.8%), West (+2.8%) and Midwest (+2.1%) but remained unchanged in Northeast.
The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose from 74.0 to 76.8 in May, the highest level since November 2025. On a year-over-year basis, pending sales were 4.8% higher than a year ago, according to the National Association of Realtors’ data.
