US Existing Home Sales Fall as Prices Hit Record

The National Association of Realtors reported that existing home sales declined for the fourth consecutive month in July, dropping 2.4% to a seasonally adjusted annual rate of 4.81 million. This marks the lowest level since January 2021. The decline was attributed to a combination of factors, including rising mortgage rates, elevated home prices, and limited inventory. Despite the sales decline, the median home price reached a record high of $406,700 in July, reflecting strong demand and limited supply. Lawrence Yun, the chief economist for the National Association of Realtors, stated that "the housing market is undeniably shifting from a seller's market to a more balanced market." He also mentioned that "buyers are starting to feel more empowered to negotiate prices." However, he cautioned that the market is still facing significant challenges, including affordability issues and tight inventory. The report also revealed that the inventory of unsold homes increased to 1.25 million in July, representing a 3.0-month supply at the current sales pace. This suggests a slight easing of inventory constraints but remains below historical norms. Overall, the report indicates a cooling housing market with declining sales and increasing inventory levels, although prices remain elevated. The market is transitioning towards a more balanced environment, offering potential opportunities for buyers but still presenting challenges related to affordability and limited supply.

Summary

"The US housing market is experiencing a cooling trend with sales declining and inventory levels increasing. While prices have reached record highs, the market is moving towards a more balanced environment, offering opportunities for buyers to negotiate prices. However, affordability and limited inventory remain significant challenges for the market."