Existing-Home Sales Declined 5.9% in July
Washington, DC, August 18, 2022-Total existing-home sales slipped 5.9% from June to a seasonally adjusted annual rate of 4.81 million in July, according to the National Association of Realtors. Year-over-year, sales fell 20.2% (6.03 million in July 2021).
"The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June," said NAR chief economist Lawrence Yun. "Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers."
Total housing inventory registered at the end of July was 1,310,000 units, an increase of 4.8% from June and unchanged from the previous year. Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 2.9 months in June and 2.6 months in July 2021.
The median existing-home price for all housing types in June was $403,800, up 10.8% from July 2021 ($364,600), as prices increased in all regions. This marks 125 consecutive months of year-over-year increases, the longest-running streak on record.
"We're witnessing a housing recession in terms of declining home sales and home building," Yun added. "However, it's not a recession in home prices. Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price."
Properties typically remained on the market for 14 days in July, the same as in June and down from 17 days in July 2021. The 14 days on market are the fewest since NAR began tracking it in May 2011. Eighty-two percent of homes sold in July 2022 were on the market for less than a month.
First-time buyers were responsible for 29% of sales in July, down from 30% in June and also in July 2021.
All-cash sales accounted for 24% of transactions in July, down from 25% in June, but up from 23% in July 2021.
Individual investors or second-home buyers, who make up many cash sales, purchased 14% of homes in July, down from 16% in June and 15% in July 2021.
Distressed sales-foreclosures and short sales-represented approximately 1% of sales in July, essentially unchanged from June 2022 and July 2021.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.41% in July, down from 5.52% in June. The average commitment rate across all of 2021 was 2.96%.
Realtor.com's Market Trends Report in July shows that the largest year-over-year median list price growth occurred in Miami, Florida (+36.2%), Memphis, Tennessee (+32.7%) and Orlando, Florida (+28.4%). Phoenix, Arizona reported the highest increase in the share of homes that had their prices reduced compared to last year (+31.8 percentage points), followed by Las Vegas, Nevada (+28.6 percentage points) and Austin, Texas (+27.8 percentage points).