June 2024 Existing Home Sales: Sales Fell as Buyers and Sellers Wait On The Sideline For An Improvement In Housing Affordability

• Existing homes sales fell by 5.4% in June to a seasonally adjusted annual rate (SAAR) of 3.89M and are now down 5.4% from June 2023, according to the National Association of Realtors (NAR).
• Total housing inventory at the end of June increased to 1.32 million units from 1.28 million units in May, up 23.4% from a year ago.
• The median existing-home sales price in June was $426,900, 4.1% higher than a year ago but lower than the 5.8% year-over-year increase in May.

What happened: After falling in May, existing home sales fell again in June.

What Zillow Senior Economist Orphe Divounguy thinks: 

In June, while slightly lower mortgage rates and more inventory on the market than in recent months gave many buyers a window of opportunity to get better financing, many first time home buyers were still struggling to afford homes, leading to fewer sales. Home sales are down 5.4% from last year and price growth is easing.

Well-priced homes continue to attract swift interest and quick transactions, demonstrating that demand remains robust for properties that meet buyers’ expectations for value. According to Zillow data, homes that sold did so in just 15 days – faster than the pre-pandemic norm of 21 days.

In June, more homes became available, but the rate of inventory growth is slowing down. While the ‘rate lock’ effect is weakening, fewer homeowners sell during the slower summer season. There is still only a 4.1-months’ supply of unsold homes at the current sales pace, compared to 3.1 months in 2023. Monthly supply is higher than the 3.7 months in May.

The decrease in sales is a stark reminder that affordability is still a challenge. Looking ahead, inflation easing faster than previously anticipated should help to bring mortgage rates down slightly from the Spring highs, potentially supporting a late season rebound in home buying activity.