According to CNBC, U.S. existing-home sales fell in June 2025 while prices climbed to a record high, signaling continued challenges for buyers navigating a tight and expensive housing market. Sales dropped 2.7% from the previous month, down to an annualized rate of 3.93 million units—one of the lowest levels since late 2023. Meanwhile, the median sale price for previously owned homes hit $435,300, a new national record and a 2% increase year-over-year.
What’s Driving the Decline?
Mortgage rates remain one of the biggest hurdles. Hovering around 6.8% to 7%, today’s rates are pricing many buyers out of the market. At the same time, housing supply remains tight. Many homeowners are choosing not to sell, locking in their low-rate mortgages and reducing the number of available listings. With less inventory and fewer transactions, prices continue to climb—even as demand weakens.
Another factor is seller behavior. In many cases, homeowners are unwilling to drop prices and would rather take their homes off the market than sell for less. This approach is keeping price tags high despite a slowdown in buyer activity.
Not All Markets Are the Same
While the national median price has reached a record, regional trends vary. Cities in the Northeast and Midwest are seeing the fastest price growth. On the other hand, markets like Austin, Tampa, and Miami are cooling down, with growing inventory and more competitive pricing. These areas may offer better opportunities for buyers who are still actively looking.
Expert Insight
Economists believe that interest rates would need to drop to around 6% for significant relief in the housing market. According to NAR Chief Economist Lawrence Yun, a modest rate drop could open the door for over 160,000 renters to transition into homeownership. Until then, market activity may remain sluggish, with affordability continuing to be a major concern.
What It Means for You
For buyers: High mortgage rates and record prices make affordability a challenge. But opportunities may exist in cooling markets or where sellers are adjusting expectations.
For sellers: While demand is slower, low inventory still gives well-priced homes a competitive edge. However, flexibility on pricing may be needed in today’s climate.
Ready to Navigate the Market?
If you’re planning to buy or sell, understanding the latest trends is key. List With Freedom is here to help guide you through every step of the process. Want to see how our pricing works or explore your options?
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