The housing market took a surprising turn this June as home prices climbed to record highs while home sales fell to a 9 month low. The spring season, typically the most active time for buyers and sellers, did not deliver the bounce many had hoped for. Despite some signs of buyer activity, affordability concerns and tight inventory continue to put pressure on the market .
You can read the full article here: Wall Street Journal – June Home Sales Down as Prices Hit Record High
Record Prices, Sluggish Sales
The national median existing-home price rose to $435,300 in June, the highest ever recorded by the National Association of Realtors since they began tracking the data in 1999. While prices increased by 2% year over year, the volume of sales told a different story. Home sales fell 2.7% from May, landing at an annualized rate of 3.93 million, the slowest pace since September.
What makes this especially challenging is that the spring selling season is traditionally the strongest in the housing market. Many had hoped that 2025 would bring a rebound, but this downturn signals that a true recovery might not arrive until mortgage rates fall significantly.
Why Prices Are Still Climbing
The ongoing mismatch between supply and demand continues to fuel home prices. Although inventory has grown in states like Texas and Florida, nationally the number of homes for sale is still below pre-pandemic levels. Sellers who had delayed listing their homes in hopes of lower mortgage rates are now entering the market due to life events like job relocations, family changes, or other personal circumstances.
In June, there were 1.53 million homes either on the market or under contract. While that’s up nearly 16% from last year, it is still too low to ease upward pressure on prices across most markets.
Buyers Are Changing Tactics
With mortgage rates hovering above 6.5%, affordability is a real concern. Many buyers are adjusting by purchasing smaller homes, teaming up with family members, or seeking out assumable mortgages that allow them to take over a seller’s lower interest rate. This kind of creativity is helping some buyers get into the market despite high prices.
For example, one couple in Virginia was able to buy a home by assuming the seller’s 2.75% mortgage. Without that option, their monthly payment would have been nearly $2,000 higher.
Looking Ahead
While mortgage purchase applications have risen in recent weeks, overall activity remains subdued. The housing market typically slows in the second half of the year as families settle into back-to-school routines and summer vacations wind down. Unless mortgage rates drop significantly, the pace of sales is unlikely to pick up in the near term.
More than one in four listings on Zillow saw a price cut in June, which is the highest share for that month since at least 2018. Buyers are beginning to gain some leverage, and sellers are becoming more flexible. Still, the affordability gap remains wide for many households.
Thinking About Buying or Selling?
If you are trying to make sense of this unusual real estate market, you are not alone. Whether you are looking to buy, sell, or simply explore your options, I can connect you with a trusted real estate partner in your area who can help you navigate it all with confidence. Reach out anytime and I will put you in touch with someone who can guide you through your next move.
