Closings on existing homes declined by 2.7% in June compared to May, dropping to an annual rate of 3.93 million units. This wasa larger dip than the 0.7% economists had expected and marks the slowest pace since last September.
The median home price reached a record high of $435,300 for the month of June. Note that this figure tracks the midpoint of homes sold, not appreciation or depreciation.
What’s the bottom line?
According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, “The recordhigh median home price highlights how American homeowners’ wealth continues to grow—a benefit of homeownership. The average homeowner’s wealth has expanded by $140,900 over the past five years.”
Yun also pointed to long-term undersupply as a key factor behind higher prices. Inventory remains tight, with just 1.53 million homes available in June. While that’s up nearly 16% from a year ago, only 1.08 million of those were active listings, with the rest already under contract. Inventory still remains well below pre-pandemic levels.
This ongoing supply shortage, combined with pent-up buyer demand, has helped support home price appreciation.
