Existing home sales declined in June as higher mortgage rates continued to weigh on buyer activity, although sales remained above year-earlier levels and home prices reached a new record, according to the National Association of Realtors (NAR).

Existing home sales fell 2.4% from May to a seasonally adjusted annual rate of 4.09 million units. Compared with June 2025, sales increased 2.8%.

Sales rose month-over-month only in the Northeast, while the Midwest, South and West posted declines. On an annual basis, sales increased in the Midwest, South and West and were unchanged in the Northeast.

“The back-and-forth in monthly home sales activity, driven by mild fluctuations in mortgage rates, shows how sensitive home buyers are to affordability conditions,” said NAR Chief Economist Lawrence Yun. “However, job gains — more than half a million since the beginning of the year — will continue to provide support for the housing market.”

Inventory slips as prices continue climbing

Housing inventory totaled 1.56 million units at the end of June, down 0.6% from May but 1.3% higher than a year earlier. That represented a 4.6-month supply of unsold homes, up from 4.5 months in May and unchanged from June 2025.

The median existing home sales price rose to a record $440,600, up 1.8% from $432,700 a year earlier. June marked the 36th consecutive month of year-over-year price gains.

“The median home price has reached an all-time high. Even so, affordability is better than a year ago because wage growth is outpacing home price growth,” Yun said. “However, progress on long-term housing affordability could be hampered if inventory growth continues to stall. Without consistent gains in inventory, home prices can accelerate. It is critical to introduce more supply to the market to widen the opportunity for homeownership.”

The Housing Affordability Index improved to 102.3 from 95.5 a year earlier, with affordability increasing in every region.

Single-family sales outperform condominiums

Single-family home sales declined 2.4% from May to an annual rate of 3.73 million but increased 3.3% from a year earlier. The median single-family home price rose 1.8% year-over-year to $446,400.

Condominium and co-op sales fell 2.7% from May to an annual rate of 360,000 and were down 2.7% from June 2025. The median condo price increased 1.6% to $380,000.

“Today’s report reflects the uncertainty in the overall market,” said NewHomeSource Chief Economist Ali Wolf. “Discretionary buyers who have the flexibility to pause their buying plans will stay in this holding pattern until they feel conditions are more stable. Sellers too may be more cautious about listing their homes, and the combined effect is putting a damper on sales.

“This isn’t limited to existing home sales either; the majority of builders say demand is slower than expected, even with incentives being more commonplace than they were a year ago.”

Northeast posts the only monthly gain

Regionally, the Northeast was the only area to record a monthly sales gain, rising 2.1% to an annual rate of 480,000. Sales were unchanged from a year earlier, while the median price increased 3.9% to $564,800.

In the Midwest, sales fell 3.0% from May to an annual rate of 980,000 but increased 2.1% year-over-year. The median price rose 2.7% to $346,600.

Southern sales declined 3.6% month-over-month to an annual rate of 1.89 million, while increasing 3.8% from June 2025. The median price climbed 0.9% to $377,700.

Sales in the West decreased 1.3% from May to an annual rate of 740,000 and increased 2.8% year-over-year. The median sales price rose 0.9% to $633,600.

Buyer profile and mortgage rates

Homes remained on the market for a median of 28 days in June, down from 29 days in May but up from 27 days a year earlier.

First-time buyers accounted for 33% of purchases, down from 35% in May but up from 30% in June 2025. Cash sales represented 25% of transactions, unchanged from the previous month and down from 29% a year earlier.

“Until buyers and sellers gain more confidence in where the market is headed, both sides are likely to stay cautious, and sales activity may stay subdued,” Wolf added.

Individual investors and second-home buyers made up 13% of transactions, compared with 14% in both May and June 2025. Distressed sales, including foreclosures and short sales, accounted for 2% of transactions, up from 1% the previous month but down from 3% a year ago.

According to Freddie Mac, the average 30-year fixed mortgage rate was 6.49% in June, up from 6.44% in May but down from 6.82% a year earlier.

This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication.