H
omebuyers have more housing options as home affordability conditions improve slightly, leading to a rise in real estate transactions in July. According to NAR's latest report, existing-home sales increased by 1.3% compared to June, marking the first uptick in sales in about four months. Despite this modest gain, sales are still down 2.5% from last year. However, lower interest rates have made homes more affordable for buyers. The average 30-year fixed-rate mortgage rate has decreased to 6.49% as of August 15, down from 7.09% a year earlier.

    The increased demand for homes has led to a rise in inventory, with total housing inventory reaching 1.33 million units at the end of July, a nearly 20% increase from last year. Properties typically stayed on the market for 24 days in July, up from 22 days in June. Despite this, home prices remain strong, with the median existing-home price for all housing types standing at $422,600, a 4.2% increase compared to last year. All major regions of the U.S. have seen home price increases, led by the Northeast with an 8.3% uptick in median home prices last month.

    First-time home buyers continue to face challenges in finding pricing relief, with condo market being one of the few options. However, while condominium prices may be cheaper, rising maintenance and insurance costs have lessened their appeal. Existing condo and co-op sales have decreased by nearly 12% compared to last year, according to NAR's data.

    Despite these challenges, first-time home buyers still made up 29% of sales in July. They continue to face steep competition from all-cash buyers, who accounted for 27% of transactions in July. Individual investors and second-home buyers made up 13% of cash sales in July, according to NAR's data.

    In terms of regional breakdown, existing-home sales in the Northeast climbed 4.3% compared to June, reaching an annual rate of 490,000. Sales in this region are up 2.1% compared to last year, with a median price of $505,100, an 8.3% increase from last year. In the Midwest, sales were mostly flat compared to June, holding at an annual rate of 920,000. Sales in this region are down 5.2% from last year, with a median price of $321,300, a 4.5% increase from July 2023. In the South, sales rose 1.1% to an annual rate of 1.79 million. Sales in this region are down nearly 4% from last year, with a median price of $372,500, a 2.3% increase from last year. In the West, existing-home sales increased 1.4% to an annual rate of 750,000. Sales in this region are up 1.4% from last year, with a median price of $629,500, a 3.4% increase from last year.