Home Prices Hit Record High, Even as Sales Slow

Even with cooler demand, the market continues to heat up where it matters most for homeowners: equity. According to the National Association of REALTORS® (NAR), the median home price in June reached $435,300—a record for the month and a 2% bump from last year. Over the past five years, the average homeowner has gained more than $140,000 in equity, highlighting just how powerful homeownership continues to be for building wealth.

Sales, however, remain sluggish. Completed transactions for existing homes fell 2.7% in June, matching last year’s lows. High mortgage rates and affordability challenges are keeping many would-be buyers—especially first-timers—on the sidelines.

🏠 Rates Still Running the Show

Mortgage rates in the mid-to-high 6% range continue to hold back demand. First-time buyers made up just 30% of sales last month, far below their usual 40% share. NAR’s research suggests that if rates dropped closer to 6%, it could open the door for 5.5 million more households—including 1.6 million renters—to afford a median-priced home.

Economists are eyeing potential rate cuts from the Fed later this year. If those materialize, we could see affordability improve and buyer activity pick up—especially in markets with growing inventory.

💵 Equity-Powered Buyers and Rising Inventory

While overall investor activity has cooled, all-cash purchases remain strong—accounting for nearly 30% of June sales. But this time, many of those cash offers are coming from repeat buyers leveraging equity from prior home sales. NAR reports about one-third of repeat buyers are skipping the mortgage altogether.

Inventory has also made modest gains, rising 16% compared to last year. Still, it’s not enough to fully meet demand, especially in the low-to-middle price tiers. About 60% of homes still sold in under a month, and one in five sold above asking.

📍 Regional Recap

Sales fell in the Northeast, Midwest, and South, while the West saw a slight bump. Prices rose in every region, led by the Northeast and Midwest. The South remained the most active market overall, with nearly 1.8 million homes sold at a median price of $374,500.

🐼 Final Thoughts

Homeowners continue to benefit from long-term appreciation, while buyers are navigating a tough affordability landscape. If mortgage rates ease later this year, expect the tide to shift—bringing more buyers back into the game.

Thinking about making a move before the next market shift? I’d love to help you plan it out.