REAL ESTATE
Home Sales Report
As discussed in Chapter 7 of our publication When to Buy and When to Sell: Combining Easy Indicators, Charts, and Financial Astrology (available on Amazon), and several previous blogs, the purchase of a home may be one of the biggest decisions, and investments, to make in one’s lifetime. Over the last few years, it has never been more difficult for young buyers, with rising inflation, property prices, and property taxes/insurance, and the situation appears to be only getting worse, with an increasing number of defaults and loans coming due.
Today’s focus is on current status of the real estate market regarding homes sales…
Nationally, total Existing-Home Sales for July, 2026, decreased 1.7% month-over-month, while dropping 0.7% year-over-year. This does not appear significant on the surface, but when considering about 4 million homes are sold per year, it does indicate a meaningful decline. Though you find comments that the real estate market is “stable” by reading media headlines, the increase in mortgage rates have slowed buying activity, and many sellers are being forced to reduce their “asking” prices slowly but surely.
The sales figures can also be broken down into both geographical areas and types of homes. According to the National Association of Realtors (NAR), the following occurred…
Month-over-month sales increased in the Northeast, held steady in the West, and declined in the Midwest and South.
Year-over-year sales rose in the Midwest and West and were flat in the Northeast and South.
Though the national data shows stabilization, there are notable local market variations. In smaller cities, and particularly in the Midwest, an annual household income of $60,000 would be sufficient to buy a median-priced home, while that figure is much higher on both coasts.
There continues to be an inventory issue as well, as the Year-over-Year homes on the market declined in July by 1.9%. Meanwhile, the supply of unsold inventory, was unchanged from last month and one year ago, remaining at an average of 4.6 months.
The median sales price in the United States rose about 2% since last July, increasing from $425,700 to $434,100, which is the 37th straight month with an increase. Again, this figure is geographically skewed as high demand locations have increased while others are decreasing.
According to the same source, the Housing Affordability Index rose to 103.3, up from 98.3 a year ago, with all regions showing improvement, led by the West.
o Northeast +1.5%
o Midwest +4.0%
o South +6.1%
o West +7.3%
This report is very suspect, however, with the younger generation continuing to find prices unaffordable in many areas.
Single-Family homes in July decreased 1.9% in month-over-month sales, but were up 0.8% from July 2025, while median price was up 1.9% to $440,300. There was no change in condominium sales month-over-month, though the median price also rose, 2.2%, to $371,800.
Overall, despite the claims of improving affordability, and a slight drop in asking prices (in some lower demand areas) for the past several months, the ability to purchase a home for young adults remains very stressed, as prices continue to climb in high demand areas, and mortgage rates remain elevated.
Though there are always the possibility of unforeseen circumstances, when considering the purchase of a home, it may be very wise to extend the normally excepted amount of savings (6 months) with the ever-rising costs related to home ownership, to prevent (as much as possible) the situation of being unable to afford the property taxes/insurance, once the property is purchased. As always, we recommend consulting with a financial advisor, and possibly a real estate professional, when making such an important decision.
Please visit the website www.augustassociatesllc.com for home values, listings, and professional assistance.
***As always, this information is not intended to be financial advice, or any specific buy or sell recommendation, but rather a guide to assist the reader in some further understanding of current economic conditions.
