Housing News

Buyers Snap Up More Existing Homes as Homeownership Becomes More Affordable

The real estate market picked up a little in July as existing homes became a little more affordable for buyers.

The number of existing home sales increased 2% from June to July, according to a National Association of Realtors (NAR) report. Existing home sales ticked up 0.8% year-over-year.

(Existing homes have previously been lived in and exclude new construction.)

“The ever-so-slight improvement in housing affordability is inching up home sales,” NAR Chief Economist Lawrence Yun said in a statement. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”

Home prices were basically flat, stretching up just 0.2% to a median $422,400 in July, according to the report. This was the slowest pace of price growth in two years.

Additionally, mortgage interest rates slipped a little in July, averaging 6.72%, according to Freddie Mac data.

“Near-zero growth in home prices suggests that roughly half the country is experiencing price reductions,” said Yun. “Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price.”

Yun stressed that lower prices don’t mean the market is in any trouble reminiscent of the housing crash in the mid-2000s. Property values have surged about 49% for the typical homeowner from July 2019 through July 2025, according to Yun.

“Overall, homeowners are doing well financially,” he said. “Only 2% of sales were foreclosures or short sales – essentially a historic low.”

Rather, there are more homes for buyers to choose from. There were 1.55 million homes on the market in July—up 15.7% year-over-year.

This means that sellers can no longer name their price in many parts of the country. There are now fewer bidding wars and more price reductions. 

Homes also spent a little longer on the market, a median 28 days. The was up from 27 days in June and 24 days in July of last year. This gives buyers a bit more time to make up their minds.

“Current [housing] inventory is at its highest since May 2020, during the COVID lockdown,” said Yun.

Who’s buying homes and where are home sales picking up?

Even with affordability improving, many cash-strapped buyers are still priced out of the market. That’s created an opportunity for investors.

Investors and second home buyers scooped up more properties in July, making up about a fifth of sales, 20%. That was up from 13% in July of last year.

Nearly a third of sales, 31%, were all-cash deals.

Meanwhile, the percentage of first-time buyers slipped just slightly. They made up 28% of sales, down from 29% in the previous year.

The South had the largest increase in annual sales in July, according to the NAR report. Existing home sales were up 2.2% year-over-year, while median home sale prices dipped 0.6% to $367,400.

Sales in the Northeast rose 2% year-over-year. Home prices ticked up 0.8% to $509,300.

In the Midwest, sales were up 1.1%. Sale prices jumped 3.9% to $333,800.

However, annual sales dipped in the West, dropping 4% year-over-year. Sale prices also came down a little, falling 1.4% to a median $620,700.

“Slight improvements in affordability may have brought more buyers out in July,” said Bright MLS Chief Economist Lisa Sturtevant in a statement. The multiple listing service covers the mid-Atlantic region. “The housing market needs a drop in mortgage rates and a slowdown in price growth—or even a drop in home prices—to bring more buyers into the market.”