After months of decline, July saw a 1.3 percent increase in existing home sales, according to a report from the National Association of Realtors.
The seasonally adjusted annual rate of existing home sales in July was 3.95 million.
While the gain ended four consecutive months of declining home sales, the data sounds a less uplifting note on the market’s recovery: Year-over-year, sales fell 2.5 percent.
In a statement, NAR chief economist Lawrence Yun labeled home sales as “sluggish,” but provided a hopeful perspective for consumers who have more options on the market and improving affordability “due to lower interest rates.” As of Aug. 15, the 30-year fixed-rate average mortgage was 6.49 percent, down from 7.09 percent a year ago.
The median sale price of existing homes last month rose 4.2 percent year-over-year to $422,600, the 13th consecutive month of annual increases recorded by NAR. All four regions tracked reported price gains.
All-cash sales accounted for 27 percent of purchases last month, down from 28 percent the month before, but up from 26 percent a year earlier.
Three of the four regions recorded month-to-month gains in home sales, with the Midwest proving to be the exception (it held steady). Sales increased on an annual basis in the Northeast and West, but declined in the Midwest and South.
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The most promising sign for the housing market may be the rebound in inventory. For-sale inventory at the end of last month was 1.33 million homes, up marginally from June, but nearly 20 percent year-over-year. Unsold inventory was at a 4-month supply at last month’s sales pace, similarly down from June but up from July 2023.
In a statement, Zillow chief economist Skylar Olsen noted the gradual increase in inventories, but splashed some water on the market by pointing out the number of available homes is still tracking below pre-pandemic levels and referenced a “period of uncertainty” looming due to factors such as the upcoming elections.