Image: Prathankarnpap / Adobestock

July brought a modest boost to the housing market. Existing-home sales rose 2% from June, reaching an annualized rate of 4.01 million. Compared with last summer, sales were slightly higher and inventory continued to expand. The result is a market with opportunity on both sides of the transaction.

Inventory Increases, Expanding Buyer Choices
Housing inventory climbed to 1.55 million units in July, the highest since 2020 and nearly 16% above last year’s levels. This translates into a 4.6-month supply of homes on the market. According to Lawrence Yun, chief economist for the National Association of Realtors (NAR), “Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price. Current inventory is at its highest since May 2020.” For buyers, that means more selection. For sellers, it introduces more competition, making thoughtful pricing and presentation essential for standing out.

Price Growth Slows
The national median existing-home price in July was $422,400, up just 0.2% compared with a year ago. This near-flat growth marks a cooling trend after years of sharp appreciation, with some markets even seeing modest price declines. Still, values remain historically high, giving sellers strong equity positions.

Mortgage Rates Provide Limited Relief
Mortgage rates averaged 6.72% in July, easing slightly from June’s 6.82%. Though still elevated by historical standards, this small decline improves affordability at the margins. “The ever-so-slight improvement in housing affordability is inching up home sales,” Yun explained. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.” For sellers, this means more buyers are financially positioned to enter the market, helping sustain steady demand even in a higher-rate environment.

Investor Activity Rises
Investors and second-home buyers accounted for 20% of July transactions, a noticeable jump from the previous month. Cash purchases also increased, making up nearly one-third of all sales. Meanwhile, distressed sales remained at just 2%, a sign of overall market health. These shifts indicate that confidence is returning, with investors viewing current conditions as an opportunity. For traditional sellers, this mix can create more avenues for strong offers, especially from cash-ready buyers.

Implications for Sellers
For homeowners considering a sale, July’s data points to a more balanced market than in recent years. With inventory expanding, the edge lies with those who list strategically—pricing in line with the market and presenting their homes in top condition. Overpricing often leads to cuts, while well-prepared listings priced right are the ones most likely to sell at or near list price and attract multiple offers.

Regional Sales Snapshot

• Northeast: 500,000 existing-home sales (+8.7% MoM, +2% YoY) | Median Price: $509,300 (+0.8%)

• Midwest: 940,000 existing-home sales (-1.1% MoM, +1.1% YoY) | Median Price: $333,800 (+3.9%)

• South: 1.85 million existing-home sales (+2.2% MoM, +2.2% YoY) | Median Price: $367,400 (-0.6%)

• West: 720,000 existing-home sales (+1.4% MoM, -4% YoY) | Median Price: $620,700 (-1.4%)