Sales of existing homes fell 3.3% in June to 4.16 million at a seasonally-adjusted annualized rate from 4.30 million in May, according to the National Association of Realtors. Sales declined in the South and West, were flat in the Midwest, and increased in the Northeast. Total existing-home sales plunged 18.9% from a year ago.

The median sale price of an existing home in June was $410,200, the second-highest price on record, and down 0.9% from the record-high price of $413,800 in June 2022. Prices rose in the Northeast and Midwest from a year ago and pulled back in the South and West.  The inventory of existing homes for sale was unchanged from the prior month at 1.08 million. June’s inventory is equivalent to 3.1 months’ supply at the existing sales pace, up from 3.0 months in May and 2.9 months in June 2022.

Existing-home sales historically made up about 90% of total home sales but given rising mortgage rates in the past year, existing-home sales have made up a much lower percentage of total sales. Existing homeowners with very low mortgage rates have strong incentives to stay put, worsening the imbalance in the housing market. Looking ahead, demand will remain challenged by elevated mortgage rates and declining affordability. New construction should improve through 2023 as the labor market softens and inflation settles. PNC expects the housing market to remain weak as interest rates remain elevated and the U.S. economy weakens.

The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance, and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.