Existing-home sales edged up in July, as increasing inventory and improving affordability pushed more homebuyers into the market.
The sale of single-family, townhomes, condominiums and co-ops increased 2 percent month-over-month and 0.8 percent year-over-year to a seasonally adjusted annual rate of 4.01 million. Total housing inventory jumped 0.6 percent month-over-month and 15.7 percent year-over-year to 1.55 million units, representing a 4.6 months of supply at the current sales pace—the highest level since May 2020.
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Softening sales and increasing inventory have led to slower median home sales price growth, which rose 0.2 percent year over year to $422,400.
Lawrence Yun | Chief economist at the National Association of Realtors
NAR Chief Economist Lawrence Yun said July existing-home sales represent an “ever-so-slight improvement” in market conditions for homebuyers.
“Wage growth is now comfortably outpacing home price growth, and buyers have more choices,” he said in a written statement.
Single-family home sales increased 2 percent from June and 1.1 percent from July 2024 to a seasonally adjusted annual rate of 3.64 million, while condominium sales only increased monthly, rising 2.8 percent to 370,000 units. Annual median home price growth in both categories slowed, with single-family home prices inching up 0.3 percent to $428,500 and condo prices declining 1.2 percent to $362,600.
“Near-zero growth in home prices suggests that roughly half the country is experiencing price reductions,” Yun said. “Overall, homeowners are doing well financially. Only 2 percent of sales were foreclosures or short sales – essentially a historic low.”
“The market’s health is supported by a cumulative 49 percent home price appreciation for a typical American homeowner from pre-COVID July 2019 to July this year,” he added. “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.”
Dr. Lisa Sturtevant
Bright MLS Chief Economist Lisa Sturtevant interpreted July’s existing-home sales less favorably, saying that July’s performance is ultimately being compared to a “disappointing June” where sales slipped 2.7 percent annually.
“Despite today’s slight uptick in sales, year-to-date (through July) non-seasonally adjusted sales are still tracking 1.3 percent below last year,” she said. “Inventory has been rising … But the fact that 2025 sales are tracking below last year suggests that buyers are still being held back.”
Sturtevant said mortgage rates, which have been in the upper 6 percent range, are constraining would-be homebuyers from entering the market and will continue to do so, especially as median home prices, despite slowing growth, are still above $400,000.
“The housing market needs a drop in mortgage rates and a slowdown in price growth — or even a drop in home prices — to bring more buyers into the market,” she said. “Rates edged down again last week in anticipation of a September rate cut by the Federal Reserve.”
“The average mortgage rate is now about 25 basis points lower than it was at the beginning of the summer. And prices have eased in most markets around the country,” she added. “But there are other factors, including rising consumer anxiety and consumer debt, that remain headwinds to the market heading into fall.”
