Existing home sales in the U.S. plummeted in June to their lowest level in nine months, down 2.7% from May. Affordability challenges due to high mortgage rates contributed to the decline, with the median price of existing homes reaching a record high of $435,300. Inventory is slowly increasing, but regional sales varied.

Despite weak sales, home prices hit an all-time high in June, up 2% from the previous year. NAR chief economist Lawrence Yun highlighted the wealth growth of American homeowners, with the average homeowner’s wealth increasing by $140,900 over the past five years. Inventory is rebuilding, but the market remains constrained by supply issues.

The housing market saw a decline in sales in the Northeast, Midwest, and South, while sales in the West increased slightly. Single-family home sales fell 3%, while condominium and co-op sales remained stable from May but decreased compared to June 2024. More supply and longer time on the market benefit buyers, but persistent undersupply and price cuts continue to pose challenges.

The record-high home prices are fueled by years of undersupply, with construction lagging behind population growth. NAR chief economist Lawrence Yun noted that lower mortgage rates could spur increased activity from first-time buyers and existing homeowners. While the market faces affordability challenges, strong income growth and healthy inventory could boost home sales in the future.

Read more at Yahoo Finance: Housing market ‘purgatory’ for existing home sales as activity falls to lowest level in 9 months