Home sales in the US rose 2% in July, according to the National Association of Realtors, exceeding expectations of a slight decline. The increase was attributed to a decrease in mortgage rates, which dropped to 6.67% in June, making homes more affordable.
There are now 1.55 million homes for sale, an 15.7% increase from last year and the highest level since May 2020. This surge in inventory is taking pressure off prices, with the median home price reaching a record high of $422,400.
Lawrence Yun, NAR’s chief economist, attributed the improvement to wage growth outpacing home prices. “The ever-so-slight improvement in housing affordability is inching up home sales,” he said. The market may now be at an inflection point.
The higher-end market continues to drive sales, with homes priced over $1 million rising 7.1% year-over-year. In contrast, sales of homes below $100,000 declined 8%. The average sale time for a home increased to 28 days, and first-time buyers made up 28% of transactions.
Investors accounted for 20% of all transactions, an increase from 13% in July 2024. This could be due to the growing supply of homes. With mortgage rates still high, the share of all-cash buyers increased to 31%. Yun noted that this “is unusually high,” suggesting stock market wealth or housing wealth may be contributing factors.
Source: https://www.cnbc.com/2025/08/21/july-home-sales-rise-as-prices-approach-inflection-point.html