Existing-home sales eased in July, falling 1.7% from June to a seasonally adjusted annual rate of 4.06 million, according to the National Association of Realtors (NAR). Sales were still up 0.7% from one year earlier, underscoring a market that remains slow but steady. Month over month, sales increased in the Northeast, held steady in the West, and declined in the Midwest and South.

Stability Defines the Market

Although monthly sales moved lower, the broader picture remains steadier than the headline decline suggests. Lawrence Yun, chief economist for the NAR, noted that home sales have remained remarkably stable despite rising mortgage rates in recent months. Year-to-date sales are also ahead of last year’s pace, even without significant rate relief.

Inventory Remains Limited

Total housing inventory declined 1.9% from June to 1.54 million homes at the end of July and was down 0.6% from one year earlier. The market remained at a 4.6-month supply, unchanged from both June and July 2025. Buyers have more options than they did during the most competitive years, but supply remains below balanced-market levels.

Prices Remain Resilient

The median existing-home price reached $434,100 in July, up 2% from one year earlier and marking the 37th consecutive month of annual price gains. For sellers, values remain resilient. For buyers, price growth is more moderate than in recent years, but affordability remains a major hurdle.

Affordability and Buyer Mix

The NAR Housing Affordability Index rose to 103.3 in July, up from 98.3 one year earlier, helped by wage gains and mortgage rates below last year’s average. Homes spent a median of 29 days on the market, up slightly from June and from one year earlier. First-time buyers represented 29% of sales, cash buyers accounted for 26%, investors and second-home buyers made up 14%, and distressed sales remained low at 2%.

Regional Sales Snapshot

• Northeast: 500,000 sales (+2% MoM, unchanged YoY) | Median price: $563,800 (+5.2%)

• Midwest: 970,000 sales (-2% MoM, +2.1% YoY) | Median price: $342,900 (+2.8%)

• South: 1.86 million sales (-3.1% MoM, unchanged YoY) | Median price: $371,700 (+0.9%)

• West: 730,000 sales (0% MoM, +1.4% YoY) | Median price: $622,200 (+0.2%)