US Home Sales Plummet to 14-Year Low Amid Short Supply and High Costs

Sales of pre-owned homes in the US dropped 3.3% in June compared to May, marking the slowest sales pace for June since 2009. The decline is attributed to a critical shortage of supply, with just 1.08 million homes for sale at the end of June, representing a 13.6% decrease from the previous year. The limited supply is keeping pressure on home prices, with the median price of an existing home sold in June reaching $410,200. Mortgage rates and inflationary pressures are also impacting affordability, particularly for first-time buyers, whose share of sales fell to the lowest level since tracking began. However, sales of newly built homes are benefiting from the supply shortage, with DR Horton reporting a significant increase in new orders.