US real estate sales rise in July for the first time in 5 months

According to recent data from the National Association of Realtors, existing home sales improved in July 2024, ending a four-month downward streak. Sales rose in three of the four major U.S. regions, with the Midwest holding steady. Year-over-year, sales rose in the Northeast and West, but declined in the Midwest and South.

Total existing home sales, which include single-family homes, townhomes, condos and co-ops, rose 1.3% from June to a seasonally adjusted annual rate of 3.95 million in July. However, year-over-year sales fell 2.5% from 4.05 million in July 2023.

Lawrence Yun

“Despite the modest increase, home sales are still sluggish,” said Lawrence Yun, NAR chief economist. “But consumers are definitely seeing more choices and affordability is improving due to lower interest rates.”

Total housing inventory at the end of July was 1.33 million units, up 0.8% from June and 19.8% from a year ago (1.11 million). Unsold inventory represents 4.0 months’ supply at the current sales pace, down slightly from 4.1 months in June but up from 3.3 months in July 2023.

The median existing home price for all home types was $422,600 in July, up 4.2% from $405,600 a year ago. Price increases were seen in all four U.S. regions.

Real estate agent trust index

The monthly Realtors Confidence Index showed that properties typically stayed on the market 24 days in July, 22 days in June, and just 20 days in July 2023.

First-time buyers accounted for 29% of sales in July, consistent with June but slightly less than the 30% in July 2023. The NAR’s 2023 Home Buyers and Sellers Profile, released in November 2023, found the annual share of first-time buyers to be 32%.

Cash payments accounted for 27% of sales in July, down from 28% in June but up from 26% a year earlier. Private investors or second home buyers, who often make cash payments, purchased 13% of homes in July, down from 16% in June 2024 and July 2023.

Distress sales, including foreclosures and distress sales, accounted for 1% of transactions in July, remaining nearly unchanged from the previous month and year-over-year.

Mortgage interest rates

Freddie Mac reported that the average interest rate on 30-year fixed-rate mortgages was 6.49 percent on August 15, up slightly from 6.47 percent the previous week, but down from 7.09 percent a year ago.

Sale of single-family homes and condominiums/cooperatives

Single-family home sales rose 1.4% in July to a seasonally adjusted annual rate of 3.57 million, down 1.4% from a year ago. The median existing single-family home price was $428,500 in July, up 4.2% from July 2023.

“The median home price for condos is lower, yet the condo market underperforms compared to the single-family home market,” Yun added. “Rising maintenance and insurance costs have reduced the attractiveness of condos.”

Sales of existing condos and co-ops remained steady in July at a seasonally adjusted annual rate of 380,000 units, but down 11.6% from a year ago (430,000 units). The average price of existing condos in July was $367,500, up 2.7% from a year ago ($357,900).

Regional breakdown

• Northeast: Existing home sales increased 4.3% in July from June to an annualized rate of 490,000, up 2.1% from July 2023. The median price was $505,100, up 8.3% from a year ago.
• Midwest: Sales in July remained flat at an annual rate of 920,000, down 5.2% from a year ago. The average price was $321,300, up 4.5% from July 2023.
• South: Sales increased 1.1% from June to July to an annual rate of 1.79 million, down 3.8% from a year ago. The average price was $372,500, up 2.3% from a year ago.
• West: Existing home sales rose 1.4% in July to an annualized rate of 750,000, also up 1.4% year over year. The median price was $629,500, up 3.4% from July 2023.