Homebuyers pull back as June home prices set a record

America’s housing market served up a familiar headache in June: fewer sales, pricier homes and buyers still getting squeezed by mortgage rates.

Sales of previously owned homes fell 2.4% from May to a seasonally adjusted annual rate of 4.09 million, according to the National Association of Realtors. CNBC reported that housing analysts had expected a small monthly increase.

The dip came even as sales were 2.8% above June 2025 levels, showing a market that is moving, but still struggling to find much speed.

Lawrence Yun, the association’s chief economist, said in a release that the monthly back-and-forth in sales shows buyers remain highly sensitive to affordability, especially as mortgage rates move. He also said job growth of more than half a million since the start of the year should keep giving the market some support.

Prices keep climbing

The median price for an existing home sold in June reached $440,600, up 1.8% from a year earlier, according to the Realtors group. That was the highest level on record.

June is typically a strong month for both sales and prices, but the latest numbers underline the squeeze facing shoppers: borrowing costs remain elevated, and the price tag on the typical home keeps rising.

The June sales figure reflects closed transactions, meaning many of the contracts were likely signed in May, when the average rate on a 30-year fixed mortgage was still rising. According to CNBC, that rate began climbing sharply at the start of March at the beginning of the Iran war.

More homes than last year, still not enough

There were 1.56 million homes on the market at the end of June, according to the National Association of Realtors. That was down 0.6% from May, but up 1.3% from June 2025.

At June’s sales pace, the available supply would last 4.6 months. A six-month supply is generally considered a balanced market between buyers and sellers.

Yun said progress on affordability could be held back if inventory growth keeps stalling. He said steadier gains in supply are needed to expand homeownership opportunities and keep prices from accelerating.

The top end is moving faster

The market’s strength remains concentrated in pricier homes, according to the Realtors data.

• Sales of homes below $100,000 fell 1.7% from a year earlier.
• Sales of homes priced from $100,000 to $250,000 rose by less than 1%.
• Sales of homes from $750,000 to $1 million climbed nearly 14%.
• Sales of homes above $1 million rose 18%.

Regionally, sales fell in June from May in every part of the country except the Northeast, according to the report.

Cash buyers also made up a smaller slice of the market. All-cash deals accounted for 25% of sales in June, down from 29% a year earlier. First-time buyers represented 33% of sales, up from 30% in June 2025.

For buyers, the message is blunt: there are slightly more homes than a year ago, but not enough to cool prices in a meaningful way. For sellers, the market still has muscle, especially at the higher end.

This story draws on original reporting from CNBC.