The US housing market remains frozen, with existing home sales plummeting 2.7% in June from the previous month, according to the National Association of Realtors. Despite this, median home prices reached a record high of $435,300, indicating that buyers are backing out of deals and standing on the sidelines.
This trend is consistent with the last three years of the housing market, where affordability has been a major issue due to limited supply and high mortgage rates. The 30-year mortgage rate has remained stuck below 7% since November, making it difficult for buyers to afford homes.
The lack of available homes and stubbornly high mortgage rates have created an affordability crisis, with millions of Americans being shut out of the housing market. Listings fell by 3.2% from the previous month in June, the biggest decline in over two years.
However, there are signs that the market is beginning to favor buyers, with inventory increasing 16% from last year and homes taking longer to sell. The median time it took for a home to sell was 27 days, up from 22 days last year. Despite this, affordability challenges remain, leaving buyers feeling uncertain about entering the market.
Experts attribute the sellers’ hesitation to drastic price cuts, citing high expectations of what they can get for their homes. The market is expected to continue favoring buyers, but the overall trend suggests that affordability remains a major obstacle for homebuyers.
Source: https://www.nytimes.com/2025/07/23/realestate/home-sales-drop-prices-rise.html