Existing-home sales slowed in July, but prices remained near record highs—another reminder that a cooler housing market does not always mean a cheaper one.
Existing-home sales fell 1.7% from June to a seasonally adjusted annual rate of 4.06 million, according to the National Association of REALTORS® August report. The median price, meanwhile, rose 2% from a year earlier to $434,100. That was only $6,500 below the all-time high set in June and marked the 37th straight month of annual price growth.
Inventory also slipped to 1.54 million homes, equal to a 4.6-month supply. Buyers have more options than they did during the tightest years of the market, but not enough to put broad downward pressure on prices. Mortgage rates are adding to the strain. The average 30-year fixed rate was 6.54% in July, keeping monthly payments high even as affordability improved from a year ago.
First-time buyers may be feeling that squeeze most. They accounted for 29% of July sales, down from 33% in June and 35% in May, though slightly above the 28% share recorded a year earlier. Buyers entering the market without equity from a previous home still have the narrowest margin for making the numbers work.
