June 2025 Existing Home Sales Fall In June

• Existing home sales fell 2.7% in June to a seasonally adjusted annual rate (SAAR) of 3.93 million. Sales were flat year–over-year, according to the National Association of Realtors (NAR).
• Total housing inventory at the end of June increased to 1.53 million units. That’s down 0.6% from May and 15.9% higher than a year ago.
• The median existing-home sales price in June was $435,300, up 2% from a year ago.

What happened: Existing home sales struggled as buyers continue to grapple with affordability challenges. Despite softened price growth since the pandemic peak, high interest rates and still-elevated price levels keep monthly payments out of reach for many. Five years ago, a median-income household could have afforded a typical home. Now, a median earner would need a $17,000 raise to afford a typical home, assuming a 20% down payment. Zillow estimates the total dollar value of existing homes sold fell 3.5% year-over-year in May, driven by sluggish sales during a softer home shopping season. This represents a downshift from the 1.2% year-over-year increase in April.

Why it matters: While sellers have returned to the market, demand appears to be lackluster this home shopping season. While not a significant improvement, Zillow data suggests that next month’s home sales count is likely to modestly increase compared to last year, given newly pending listings — the precursor to a sale — saw a slight improvement in June. 

Sales are expected to continue to dance around the bottom — Zillow projects existing home sales to reach 4.16 million in 2025, a modest uptick from last month’s estimate of 4.14 million. This would represent a 2.5% increase over 2024. Higher housing inventory dampens price growth and gives buyers more negotiating leverage, which is expected to be a tailwind for sales. However, unless there is a meaningful improvement in borrowing costs or significant fall in prices, which Zillow does not expect, sales will continue to face an uphill battle.