NDR: Home sales fall to lowest level this year.

The rout in the housing market extended for another month in June, as rising home prices and still elevated mortgage rates weighed on housing affordability and sales. Existing home sales fell 5.4% to a 3.89 million unit annual rate, the lowest level this year, and below the consensus estimate of a 3.95 million unit rate. This was the fourth consecutive decline and the biggest drop since November 2022. Barely above the cyclical low in October 2023, the sales rate is near its lowest level since 2010. Both single-family and condo/co-op sales fell last month, and total volume was lower than a year ago. The weakness was widespread across regions.

Although modest, the recent easing in inventory tightness could lead to some downward pressure on home prices, with a potential positive impact on affordability and sales.

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