Breaking a streak of four consecutive monthly declines, existing-home sales rebounded in July, according to the National Association of Realtors (NAR). Three out of four major U.S. regions recorded sales increases, and the Midwest remained steady. Year over year, sales rose in the Northeast and West but dropped in the Midwest and South.
Total existing-home sales—completed transactions that include single-family homes, townhomes, condominiums, and co-ops—climbed 1.3% from June to a seasonally adjusted annual rate of 3.95 million in July. Year over year, sales fell 2.5% (down from 4.05 million in July 2023).
"Despite the modest gain, home sales are still sluggish," says NAR chief economist Lawrence Yun. "But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates."
Total housing inventory registered at the end of July was 1.33 million units, up 0.8% from June and 19.8% from one year ago (1.11 million). Unsold inventory sits at a four-month supply at the current sales pace, down from 4.1 months in June but up from 3.3 months a year ago.
The median existing-home price for all housing types in July was $422,600, up 4.2% from one year ago ($405,600). All four U.S. regions posted price increases.
"Home sales dropped in July compared to a year earlier, and the number of homes for sale rose to the highest level since October 2020. Meanwhile, prices went up 4.2% compared to a year earlier," says Holden Lewis, NerdWallet home and mortage expert. "It's unusual for prices to rise while inventories are going up. The reason is that even though more homes are on the market, there still aren't enough homes for sale to meet demand, giving buyers an incentive to bid up prices. If inventories continue to climb, prices will level off."
According to the monthly Realtors Confidence Index, properties typically remained on the market for 24 days in July, up from 22 days in June and 20 days in July 2023.
First-time buyers were responsible for 29% of sales in July, equal to June but down from 30% in July 2023. All-cash sales accounted for 27% of transactions in July, down from 28% in June but up from 26% one year ago.
Individual investors or second-home buyers, who make up many cash sales, purchased 13% of homes in July, down from 16% in both June 2024 and July 2023.
Single-family home sales grew 1.4% to a seasonally adjusted annual rate of 3.57 million in July, down 1.4% from the previous year. Up 4.2% from July 2023, the median existing single-family home price was $428,500 in July.
Regionally, existing-home sales in the Northeast in July rose 4.3% from June to an annual rate of 490,000, an increase of 2.1% from July 2023. The median price in the Northeast was $505,100, up 8.3% from last year.
The Midwest’s existing-home sales were unchanged in July at an annual rate of 920,000, down 5.2% from the previous year. Up 4.5% from July 2023, the median price was $321,300.
Existing-home sales in the South increased 1.1% from June to an annual rate of 1.79 million in July, down 3.8% from one year before. The median price in the South was $372,500, up 2.3% from one year earlier.
In the West, existing-home sales increased 1.4% in July to an annual rate of 750,000, also up 1.4% from a year ago. The median price in the West was $629,500, up 3.4% from July 2023.
