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HOMEOWNERS SEE RECORD EQUITY GAINS, EVEN AS SALES STAY COOL
Despite a quieter pace in home sales, homeowners across the country are celebrating a big win: rising equity. New data shows that price appreciation continues to reward homeowners—even as many buyers remain cautiously on the sidelines.
HOME VALUES CLIMB TO NEW JUNE RECORD
The median U.S. home price rose to $435,300 in June, the highest ever recorded for the month, according to the National Association of REALTORS® (NAR). That marks a 2% increase from the same time last year.
“This record-high median home price highlights how American homeowners’ wealth continues to grow—a benefit of homeownership,” says Lawrence Yun, NAR’s chief economist.
In fact, the average homeowner has gained more than $140,000 in equity over the past five years alone. And the gap between owners and renters keeps widening. Yun projects that by 2025, the typical homeowner’s net worth will reach $430,000, compared to just $10,000 for renters.
SUPPLY STRUGGLES KEEP PRICES STRONG
Ongoing inventory challenges continue to support higher home values. While housing supply improved modestly—up about 16% year-over-year in June—it still lags well behind what’s needed, particularly for affordable options.
“Multiple years of undersupply is driving the record-high home prices,” Yun says. “Home construction continues to lag population growth.”
That means many markets remain competitive: 60% of homes sold in June went under contract in less than a month, and more than 1 in 5 sold above asking price.
SALES DIP, BUT OPPORTUNITY REMAINS
Existing-home sales dipped 2.7% in June, holding near 30-year lows. Higher mortgage rates—hovering in the mid- to high 6% range—are the main reason buyers are pausing.
“High mortgage rates are causing home sales to remain stuck at cyclical lows,” Yun explains. First-time buyers are especially affected, making up just 30% of sales in June, still below their typical 40% share.
But there’s light ahead: If mortgage rates fall closer to 6%, affordability could open up to 5.5 million more households—including 1.6 million renters, NAR analysis shows.
MORE BUYERS ARE PAYING CASH
While some are waiting for rates to drop, others are moving forward—without a mortgage. Nearly 30% of June home sales were all-cash transactions, a historically high share.
Interestingly, this wave isn’t being driven by investors. Instead, many repeat buyers are using equity from previous home sales to purchase their next home outright. NAR reports that about one-third of repeat buyers paid in full without financing.
Yun remains optimistic that better days are ahead: “If mortgage rates decrease in the second half of this year, expect home sales to increase across the country due to strong economic growth, healthy inventory and a record-high number of jobs.”
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