June saw a decline in sales of previously owned homes, dropping 2.4% from May to 4.09 million units on a seasonally adjusted basis, according to the National Association of Realtors. This decrease came despite analysts' expectations of a slight increase. Nonetheless, sales were still 2.8% higher compared to June 2025. The dip in transactions reflects buyers' sensitivity to varying mortgage rates, which began to rise sharply in March amidst geopolitical tensions related to the Iran war.

Inventory levels at the end of June stood at 1.56 million units, marking a 0.6% decrease from May yet a 1.3% increase year over year. This inventory amount represents a 4.6-month supply at the current sales pace, which indicates a market leaning toward sellers as a balanced market traditionally requires a six-month supply. The limited supply continues to push home prices upwards, with the median price of existing homes reaching $440,600, a 1.8% increase from the previous year and the highest recorded.

Lawrence Yun, the National Association of Realtors’ chief economist, pointed to the importance of job growth, which has added over half a million positions since the start of the year, as a stabilizing factor supporting the housing market. However, he emphasized that ongoing supply constraints could hinder progress on long-term housing affordability. Without more consistent inventory gains, home prices may continue their upward trajectory, making it increasingly difficult for new buyers to enter the market.

The sales trends revealed a divergence in market segments: luxury home sales rose significantly, with prices between $750,000 and $1 million jumping nearly 14%, and homes over $1 million seeing an 18% increase from the prior year. Conversely, sales of more affordable homes priced below $250,000 saw only modest changes or declines. Regionally, home sales fell across most areas except the Northeast. Additionally, all-cash transactions accounted for 25% of sales, down from 29% last year, while first-time buyers made up 33% of purchases, an increase from 30% a year ago.