By Melissa Dittmann Tracey | National Association of Realtors
Housing affordability is showing signs of improvement lately, but costs still may be the biggest reason many buyers remain hesitant to get into the market. Existing-home sales—which includes single-family homes, townhomes, condos and co-ops—fell 2.4% in June from the previous month, backing off a five-month high reached in May. Still, sales remain nearly 3% higher than a year ago, the National Association of REALTORS® reported Thursday.
While sales fell last month, home prices soared. The median existing-home price hit an all-time high of $440,600 in June, NAR reports. Prices were up about 2% from a year ago, marking three consecutive years of monthly home price increases.
The elevated home prices and mortgage rates may be prompting prospective buyers to rethink their budgets.
“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,” says Lawrence Yun, NAR’s chief economist. “However, job gains—more than half a million since the beginning of the year—will continue to provide support for the housing market.”
