A slight decline in mortgage rates seems to have made a big difference
of ConsumerAffairs-
Existing-home sales rose 2.0% in July, reaching an annual rate of 4.01 million.
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Inventory hit its highest level since May 2020, giving buyers more options.
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Home prices showed near-zero growth, with many regions seeing price reductions.
Buyers returned to the housing market in July as mortgage rates drifted lower. Existing-home sales rose 2.0% to a seasonally adjusted annual rate of 4.01 million, according to the National Association of Realtors.
The rebound comes as wage growth outpaces home price gains, making ownership slightly more affordable and boosting buyer confidence.
Wage growth is now comfortably outpacing home price growth, and buyers have more choices, said Lawrence Yun, NARs chief economist. Condominium sales increased in the South region, where prices had been falling for the past year.
Regional trends
Sales momentum varied across the country. The Northeast posted the strongest monthly gain, up 8.7%, followed by the South, up 2.2%, and the West, up 1.4%. The Midwest slipped 1.1% compared with June. Year-over-year, sales improved in the South, Northeast, and Midwest, but fell in the West.
Median prices painted a mixed picture. Nationally, the typical existing home sold for $422,400, virtually unchanged from a year earlier. Regional disparities stood out: prices rose in the Northeast (0.8%) and Midwest (3.9%), but fell in the South (0.6%) and West (1.4%).
Inventory at a four-year high
Inventory climbed to 1.55 million units in July, a 15.7% increase from a year earlier and the highest level since the early months of the COVID-19 pandemic. That equates to a 4.6-month supply of homes, slightly below June but above July 2024.
Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price, Yun said. The ever-so-slight improvement in affordability is inching up home sales.
Despite sluggish price growth, homeowners remain in solid financial shape. NAR reported that only 2% of transactions were foreclosures or short sales, a near-record low. Since July 2019, typical homeowners have gained 49% in home price appreciation.
Single-family sales rose 2.0% in July, while condo and co-op transactions gained 2.8% on the month. However, condo sales remain down 2.6% compared to last year, with prices slipping 1.2%.
Overall, NAR said the housing market appears to be shifting in favor of buyers, with more inventory and easing price pressures creating opportunities not seen since before the pandemic.
Posted: 2025-08-22 11:04:09
