Houses in Los Angeles, California, USA, on Sunday, July 13, 2025. As in the broader US market, in Southern California, high interest rates and the demand for economic uncertainty in sales of homes have slowed themselves down.
Eric Thayer | Bloomberg | Getty pictures
The turnover of previously owned in June in June in May from May 3.93 million units, annualized base was, according to the National Association of Realors. Analysts had expected a decline of only 0.7%. The turnover was unchanged from June 2024.
This report is based on closings, so that contracts that were probably signed in April and May the average interest rate for the 30-year-old fixed mortgage rose over 7% a few times and, according to Mortgage News, never increased less than 6.8%.
“High mortgage rates lead to the fact that sales of homes on cyclical deep stalls,” said Lawrence Yun, chief economist of the NAR, in an release. “If the average mortgage interest rates sink to 6%, our scenario analysis suggests that another 160,000 tenants become the first house owner and increased sales activities of existing homeowners.”
The mortgage interests have not shifted significantly in recent months and are persistent in terms of the broader economy. The average rate is now 6.77%.
Get the property directly into your inbox
CNBC's real estate game with Diana Olick covers new and developing opportunities for the real estate investor and delivers in your inbox weekly.
Subscribe here to gain access today.
The supply continues to increase with 1.53 million units for sale at the end of June. This is an increase of 15.9% compared to the previous year and corresponds to the current sales pace by 4.7 months. A six -month offer is considered balanced between buyer and seller, so that the market is still slim.
The average price of a home sold in June was $ 435,300, an increase of 2% compared to the previous year and another record high for June. That is the 24th month in a row with annual increases.
“Several years of the undersupply accomplished the record price with a high home price. The house building has remained the population growth. This keeps the first-time buyers of ownership from entry into the market,” said Yun, also found that the average prosperity of the home owner has risen by $ 140,900 in the past five years.
The sales continue to surpass the upper end of the market. Houses that declined below $ 100,000 a year. The houses cost between 100,000 and 250,000 US dollars by 5%. And houses over 1 million US dollars rose by 14%.
The houses spend longer on the market, with an average of 27 days compared to 22 days last June. Higher houses sell faster than the price of less than $ 500,000.
First buyers made 30% of sales. Historically, this demography accounts for 40% of all buyers. The proportion of all-cash deals remained increased with 29% of sales. The pre-Kovid turnover made around 20% of the market.
The houses listed received an average of 2.4 offers, somewhat after 2.5 in the last month and after 2.9 in the previous year.