WASHINGTON — The U.S. existing-home market showed signs of recovery in July, halting a four-month decline with a modest sales increase, according to the National Assn. of Realtors. The latest NAR report shows that while prices continue to rise, inventory has grown slightly, and regional dynamics play a significant role.
Existing-home sales rose by 1.3% in July, reaching a seasonally adjusted annual rate of 3.95 million. This marks the end of a four-month sales slump that began in March. While this uptick signals a recovery, it’s tempered by the fact that sales are still down 2.5% compared with the same period last year. The improvement was driven by gains in the Northeast, South and West, while the Midwest remained stable.
“Despite the modest gain, home sales are still sluggish,” said NAR Chief Economist Lawrence Yun. “But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.
The median price for existing homes across the U.S. increased by 4.2% from July 2023, reaching $422,600. This marks the 13th consecutive month of year-over-year price gains, underscoring the ongoing affordability challenges for potential buyers. All four major U.S. regions saw price increases, with the Northeast experiencing the most significant rise at 8.3%, pushing its median price to $505,100.
Yun also highlighted the sustained demand for standalone single-family homes.
“The median home price of condominiums is cheaper, yet the condominium market is underperforming compared to the single-family market,” he added. “Rising maintenance and insurance costs have lessened the appeal for condominiums.”
The inventory of unsold existing homes at the end of July stood at 1.33 million units, a slight increase of 0.8% from June and up 19.8% from a year ago. This represents a 4-month supply at the current sales pace, a slight decrease from the 4.1-month supply recorded in June but higher than the 3.3-month supply from July 2023. The increased inventory offers more choices to buyers, potentially easing some of the upward pressure on prices.
Regionally, the market showed significant differences. The Northeast led the way with a 4.3% increase in sales from June and a 2.1% increase from July 2023. The South and West also saw sales increases, while the Midwest’s sales were flat for the month and down 5.2% year-over-year.
These variations highlight the uneven recovery across the country, influenced by local economic conditions and housing market dynamics.