“The record high median home price highlights how American homeowners’ wealth continues to grow—a benefit of home ownership,” NAR chief economist Lawrence Yun said in the report.
“The average homeowner’s wealth has expanded by $140,900 over the past five years.”
Yun cited many years of low inventory and lagging new construction as factors contributing to the drive toward record-high home prices.
“This is holding back first-time homebuyers from entering the market,” he said. “More supply is needed to increase the share of first-time homebuyers in the coming years.”
The report indicates that June’s total national inventory was down by 0.6 percent from May. However, inventory did increase by almost 16 percent over June 2024. Last month registered a 4.7 months’ supply of unsold inventory, with 1.53 million available housing units on the market.
Overall, national existing-home sales declined by 2.7 percent, marking the slowest pace since September 2024, with the Northeast experiencing the largest regional drop at 8 percent. Month-over-month sales also decreased in the Midwest and South by 4 percent and 2.2 percent, respectively, but grew slightly in the West by 1.4 percent.
Existing-home sales were flat year over year.
The West holds the top spot for the highest median home price at $636,100—up just 1 percent from last June. The Northeast follows with a median of $543,300—a 4 percent advance from June 2024. The price for single-family homes in the South rose slightly over last year, to $374.500, while the Midwest remains the most affordable region, with median prices at $337,600—a 3.4 percent increase over last year.
Nationwide, the condo and co-op market held a median sales price of $374,500, representing almost a 1 percent increase from last June. Sales remained flat from last month, but were down 5.3 percent from June 2024.
The median time for properties on the market was 27 days in June, unchanged from May but significantly higher than the 22 days in June last year. First-time buyers represented 30 percent of sales, and 29 percent were cash sales. Just 14 percent of transactions were by individual investors or second-time buyers.
Yun said that mortgage interest rates remain a partial deterrent for the country’s sagging home sales.
“If the average mortgage rates were to decline to 6 percent, our scenario analysis suggests an additional 160,000 renters becoming first-time homeowners and elevated sales activity from existing homeowners,” he said.
The report shows current mortgage rates at 6.75 percent, according to Freddie Mac.
