Existing-Home Sales Decline in July, NAR Report Shows

Existing home sales in the U.S. is a mixed bag, according to a new report from the National Association of Realtors Existing Home Sales report, which provides the real estate ecosystem, including agents, homebuyers and sellers, with data on home sales, prices and inventory.

According to the report, existing-home sales decreased by 1.7% month-over-month and increased by 0.7% year-over-year.

The NAR reported that month-over-month sales increased in the Northeast, held steady in the West, and declined in the Midwest and South. Year-over-year sales rose in the Midwest and West and were flat in the Northeast and South, the report said.

“Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months,” said NAR Chief Economist Lawrence Yun. “Year-to-date sales are up 2.4% and there’s no doubt that the housing market would be thriving if average mortgage rates were to return near 6%.”

“Though the national data shows stabilization, there are notable local market variations,” Yun said. “In smaller cities, and particularly in the Midwest, an annual household income of $60,000 would be sufficient to buy a median-priced home. Working with an agent who is a REALTOR will help you better pinpoint what’s happening in your area.”

National Snapshot

Total Existing-Home Sales for July

• 1.7% decrease in existing-home sales1 month-over-month.
• 0.7% increase year-over-year to a seasonally adjusted annual rate of 4.06 million.

Inventory in July

• 1.54 million units: Total housing inventory2, down 1.9% from June and down 0.6% from July 2025.
• 4.6-month supply of unsold inventory, unchanged from last month and one year ago.

Median Sales Price in July

• $434,100: Median existing-home price3 for all housing types.
• 2.0% increase from one year ago ($425,700), marking the 37th consecutive month of year-over-year price increases.

Sarah Bonnarens, Director of Economic Research at NewHomeSource, the consumer portal for Zonda, said the report was not a surprise.

 “Today’s drop in existing home sales isn’t overly surprising given where rates sit. With borrowing costs still near year-long highs, affordability is front and center, and potential buyers who don’t have to move simply aren’t. The housing market is essentially in cold storage, with many buyers and sellers waiting for conditions to thaw. Unlike the new home market, where builders can use incentives like mortgage rate buydowns to encourage sales, existing homeowners have fewer tools to offset today’s financing costs,” Bonnarens said.

 New research from NewHomeSource shows that Gen Z may be bringing a shift to the housing market, showing more flexibility over where they buy instead of how much they spend.

‘A Holding Pattern’

Mary Lee Blaylock, President of Coldwell Banker Affiliates, said that the NAR report is indicative of where interest rates stand.

“Today’s existing home sales data is reflective of a market that remains in a holding pattern while interest rates are elevated. Right now, being in the housing market can feel like being in stop-and-go traffic. A dip in mortgage rates or the end of the school year will get people moving for a minute, until rate increases and the end of summer vacation causes them to hit the brakes once again,” Blaylock said.

 “There’s a disconnect with both buyers and sellers right now. Buyers are still coming off of years of experiencing a seller’s market, and that shift is creating some unclear expectations. Many buyers think they can leverage a balancing market to score a deal, but the reality is that the housing market is more nuanced than that – a buyer’s ability to lead the transaction greatly depends on where they live,” Blaylock noted. “On the other hand, sellers are working through shifting expectations. Now that homes aren’t flying off the market as they did a few years ago, accurate pricing is critical. Regardless of location, agents help buyers and sellers set realistic expectations under market conditions where both sides are feeling hesitant.”