The housing market is traditionally busiest in spring, but this year’s key buying season proved lackluster. The month-over-month decline largely reflected affordability challenges: mortgage rates hovered close to 7% throughout April and May, when most June closings would have entered contract.
Regional dynamics varied. Sales dropped in the Northeast, Midwest, and South, but edged higher in the West, with year-over-year changes mirroring these splits. Single-family home sales slipped 3%, while sales of condominiums and co-ops were stable compared to May but down 5.3% against June 2024.
If mortgage rates decrease in the second half of this year, Yun said, he expects home sales to increase across the country due to strong income growth, healthy inventory, and a record-high number of jobs.” For now, though, it’s a familiar story of peak prices and affordability the main obstacle for would-be homebuyers in the U.S.
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
