
Total existing-home sales, which includes sales of single-family homes, townhomes, condominiums, and co-ops, decreased for the sixth consecutive month in July, according to the National Association of Realtors (NAR). Sales fell 5.9% from June to a seasonally adjusted annual rate of 4.81 million in July. On a year-over-year basis, sales fell 20.2% in July.
“The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June,” says NAR chief economist Lawrence Yun. “Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers.”
According to Freddie Mac, the average commitment rate for a 30-year conventional, fixed-rate mortgage was 5.41% in July, down from 5.52% in June. The average commitment rate across all of 2021 was 2.96%.
Total housing inventory at the end of July was 1,310,000 units, an increase of 4.8% from June and level with inventory levels in July 2021. Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 2.9 months in June. The median existing-home price for all housing types in July was $403,800, up 10.8% on a year-over-year basis, marking the 125th consecutive month of year-over-year price increases.
“We’re witnessing a housing recession in terms of declining home sales and home building,” Yun says. “However, it’s not a recession in home prices. Inventory remains tight, and prices continue to rise nationally, with nearly 40% of homes still commanding the full list price.”
Properties typically remained on the market for 14 days in July, down three days from July 2021, according to the NAR. The 14 days on the market are the fewest since the NAR began tracking the figure in May 2011. Approximately 82% of homes sold in July were on the market for less than a month.
All-cash sales accounted for nearly a quarter of transactions in July, while first-time buyers were responsible for 29% of sales during the month. Individual investors or second-home buyers purchased 14% of homes in July.
Single-family home sales decreased to a seasonally adjusted annual rate of 4.31 million in July, down 5.5% from June and 19% from July 2021. The median existing single-family home price increased 10.6% on a year-over-year basis to $410,600 in July.
Existing-home sales in the Northeast declined 7.5% from June and 16.2% on a year-over-year basis. Prices in the region rose 8.1% compared with July 2021. Sales in the Midwest slid 3.3% compared with the prior month and 14.4% compared with the prior-year period. Prices increased by 7% on a year-over-year basis.
Existing-home sales in the South declined 5.3% in July compared with June and declined 19.6% compared with July 2021. Prices in the region rose 14.7% compared with the prior-year period. In the West, existing-home sales decreased 9.4% compared with June and 30.4% compared with July 2021. Prices jumped 8.1% on a year-over-year basis in the West.
According to the NAR, Miami (+36.2%), Memphis, Tennessee (+32.7%), and Orlando, Florida (+28.4) experienced the largest increase in median price growth on a year-over-year basis in July. Phoenix reported the highest increase in the share of homes that had their prices reduced compared with last year (+31.8%), followed by Las Vegas (+28.6%), and Austin, Texas (27.8%).