In July, existing home sales in the U.S. rebounded after a four-month decline, as reported by the National Association of Realtors (NAR) on Thursday. Sales increased by a higher-than-anticipated 1.3 percent, reaching an annual rate of 3.95 million, following a significant 5.1 percent drop to a revised rate of 3.90 million in June.
Economists had forecasted a 1.0 percent increase in existing home sales, projecting an annual rate of 3.93 million from the originally reported 3.89 million for the previous month.
"Despite the modest gain, home sales remain sluggish," commented NAR Chief Economist Lawrence Yun. "However, consumers are experiencing more options, and affordability is improving due to lower interest rates."
The report highlighted a 1.0 percent decrease in the median existing home price, which fell to $422,600 in July from $426,900 in June. Nevertheless, this figure is still 4.2 percent higher than the $405,600 recorded in the same month last year.
Housing inventory at the end of July reached 1.33 million units, marking a 0.8 percent increase from 1.32 million in June and a 19.8 percent increase from 1.11 million units in July 2023. The unsold inventory equates to a 4.0-month supply at the current sales pace, a slight decrease from 4.1 months in June but an increase from 3.3 months a year earlier.
NAR also reported a 1.4 percent rise in single-family home sales, reaching an annual rate of 3.57 million in July, while sales of existing condominiums and co-ops remained stable at an annual rate of 380,000.
Additionally, the Commerce Department is set to release a separate report on new home sales for July on Friday. Projections indicate a 2.1 percent surge in new home sales, anticipated to reach an annual rate of 630,000 following a 0.6 percent drop to a rate of 617,000 in June.
