Record-High U.S. Home Prices Persist as Sales Decline in June

In June, U.S. home prices reached another unprecedented peak even as prospective buyers hesitated and withdrew from transactions. Typically the busiest period for home sales, the market instead showed signs of stagnation with declining sales figures.

Sales of existing homes decreased by 2.7 percent compared to May, while the median price rose to $435,300—a record high for the month of June, as reported by leading real estate data sources.

June is traditionally the apex of the spring housing season, when many Americans relocate before summer vacations, the start of a new school year, and winter holidays. Although sales often rebound in the fall, the weak spring performance this year has set a concerning tone. Approximately 15 percent of home purchase agreements fell through in June—the highest rate recorded for that month—highlighting buyer apprehension amid economic uncertainty.

Affordability remains the central obstacle. According to housing market analysts, many buyers feel priced out and unable to commit at current price levels.

This persistent gap between soaring home prices and dwindling sales has characterized the U.S. housing market for the past three years. June marked the 24th consecutive month of year-over-year price increases nationwide, even as some regions, such as the Northeast, experienced an 8 percent drop in sales from the previous month. This imbalance stems from a limited supply of homes combined with elevated mortgage rates, exacerbating affordability challenges for millions of potential buyers.

Mortgage rates on 30-year fixed loans have hovered just under 7 percent since late last year, standing at 6.75 percent as of mid-July. These rates, which closely follow the 10-year Treasury yield, peaked earlier this year and are not expected to decline significantly in the near term.