Existing-home sales fell 2.4% in June from May to a seasonally adjusted annual rate of 4.09 million, ending the spring selling season on a weaker-than-expected note.
The median existing-home price climbed to a record $440,600, up 1.8% from a year ago, extending a streak of annual price gains despite slower sales.
The National Association of Realtors says affordability remains a challenge, but wage growth continues to outpace home price appreciation, offering some encouragement for prospective buyers.
Sales of previously owned homes declined in June as higher mortgage rates and affordability challenges continued to sideline many prospective buyers. Even so, home prices climbed to another all-time high.
The National Association of Realtors (NAR) reports that existing-home sales fell 2.4% from May to a seasonally adjusted annual rate of 4.09 million units. While that marked a 2.8% increase from June 2025, the pace was below economists' expectations and underscored the sluggish housing market that has persisted for much of the past several years.
At the same time, the median existing-home sales price rose to a record $440,600, an increase of 1.8% from a year earlier. In June, the median home price for all housing types was $440,600. In January 2020, before the COVID-19 pandemic, it was $266,300, 65% less than in June. June was the 36th consecutive month of year-over-year price gains, reflecting a market where limited inventory continues to support home values despite softer demand.
At these prices, today’s mortgage rates are a problem
NAR Chief Economist Lawrence Yun said homebuyers are benefiting from improving income growth, even though elevated mortgage rates remain a significant hurdle.
"Wage gains are outpacing home price appreciation," Yun said, noting that the combination has modestly improved affordability compared with recent years. However, he added that higher borrowing costs continue to discourage many would-be buyers from entering the market.
Inventory remains constrained, although conditions have improved somewhat. At the end of June, there were 1.56 million existing homes available for sale, representing a 4.6-month supply at the current sales pace. While inventory has increased from a year ago, it remains below the level many economists consider necessary for a balanced housing market.
Slightly more first-time buyers
The share of purchases by first-time buyers edged up to 33% in June but remained below the historical average of about 40%, highlighting the ongoing affordability challenges facing younger households and those trying to enter the housing market.
Sales activity varied by price range. Higher-priced homes continued to perform well, with sales of properties priced above $1 million rising sharply from a year ago. Meanwhile, sales of lower-priced homes remained weak, suggesting affordability pressures continue to weigh most heavily on entry-level buyers.
The housing market has also been affected by recent increases in mortgage rates. Rates rose after renewed geopolitical tensions in the Middle East pushed Treasury yields higher, making home financing more expensive. Economists say even modest increases in mortgage rates can have an outsized effect on buyer demand.
Despite the June slowdown, NAR maintains that the market has shown modest improvement compared with last year. Existing-home sales during the first half of 2026 were higher than during the same period in 2025, suggesting buyers are gradually returning as more homes become available, although affordability remains the industry's biggest challenge.