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U.S. Home Sales Decline in June as Median Price Hits Record High of $435,300

Prime Highlights

  • Existing  U.S.home sales fell 2.7% in June, lowest since September 2024.
  • Median price was a record $435,300, with continued affordability issues.

Key Fact

  • Supply of homes rose 16% compared to last year but is still below pre-pandemic supply.
  • Despite more listings, stronger mortgage rates are still restraining demand by buyers.

Key Background

US housing market remained pummeled in June 2025 as U.S. Home Sales  of existing homes fell 2.7% to a seasonally adjusted annual rate of 3.93 million units. It is the lowest sales pace since last September. Overall U.S. Home Sales were unchanged from a year earlier as of June 2024, but yet short of market estimates because of persistently higher mortgage interest rates and homes that are too pricey. The decline mirrors how tighter borrowing costs and narrow affordability have tapped what’s historically been the peak of the selling season quite hard. Despite that, the median resale price hit a record-breaking level of $435,300, 2% higher than last year.

The increase in prices is mostly due to the constricted housing supply despite inventory rising by some 16% from last year to 1.53 million units. This expansion is not enough to balance the market, since prior to the pandemic inventory was sitting at about 2 million homes. Appreciation in price thus still pinches first-timers and hinders market activity. The other major shift is in timelines on home purchases. Homes in June typically stayed on the market for 27 days, which is somewhat longer than 22 days a year ago. Additionally, some 21% of listings received price reductions—the all-time June record. That means sellers are responding to less competitive conditions where higher mortgage rates near 7% are suppressing buying interest.

Delistings have also risen nearly 47% year-on-year, meaning owners reluctant to sell at prevailing rates instead of receiving lower offers. Economists think that a stronger revival in the homes’ sales will also depend on mortgage rates falling to just below 6%. In the meantime, the value proposition of frothy prices combined with rising interest rates and tight supply will keep the American housing sector trapped in a long cycle of stagnation.
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