Home sales fell 2.7% in June as prices hit record high

Sales of previously owned homes in the US dropped 2.7% in June, far worse than analysts predicted. The record-high prices and mortgage rates, coupled with inflation and tariff-related economic woes, are deterring homebuyers.

The median price of a house reached a record high of $435,300 last month, and mortgage rates are hovering near 7%, making affordability a major hurdle.

Cancellations also rose at the same time. Redfin reports 15% of sales dropped last month because buyers either got cold feet or are betting on falling prices.

Meanwhile, inventory is growing. There were 1.53 million homes for sale in June, marking a 15.9% year-over-year increase.

High-end homes are doing fine. Sales of houses priced above $1 million rose 14%. Homes costing between $100,000 and $250,000 also rose 5%, while sales of those below $100,000 sank 5%.

Area-wise, Sunbelt cities like Austin and Tampa are seeing price drops, while the Midwest and Northeast continue to climb.

Overall, with home sales dropping nationwide, buyers could see lower prices.