Home / Business and Economy / Home Sales Climb in July 2025 as Affordability Improves
Home Sales Climb in July 2025 as Affordability Improves
21 Aug
Summary
- Home sales rose 2% in July 2025 compared to June
- Inventory increased 15.7% from July 2024, reaching highest level since May 2020
- Median home price up just 0.2% annually, indicating market may be at inflection point
According to data from the National Association of Realtors, sales of previously owned homes in the United States rose 2% in July 2025 compared to June, reaching 4.01 million units on a seasonally adjusted, annualized basis. This increase came as a surprise to housing analysts, who had been expecting a slight decline.
The sales figures, which are counted by closings, likely reflect contracts signed in May and June, when the average rate on the 30-year fixed mortgage was in decline. That rate had briefly exceeded 7% in May before ending June at 6.67%.
Inventory levels also saw a significant increase, rising 15.7% from July 2024 to 1.55 million homes for sale at the end of the month. This represents a 4.6-month supply, still below the 6-month level considered balanced between buyers and sellers, but the highest since May 2020.
The ever-so-slight improvement in housing affordability appears to be inching up home sales, according to Lawrence Yun, NAR's chief economist. Wage growth is now outpacing home price growth, and buyers have more choices as the market shows signs of reaching an inflection point. The median price of an existing home sold in July 2025 was $422,400, an increase of just 0.2% from the same month a year earlier, a record high for the month of July.
