National Real Estate Market Update – June 2025

Sales Dip Slightly as Prices Hit New Highs

U.S. existing-home sales dropped 2.7% in June, according to the National Association of REALTORS® (NAR), falling to a seasonally adjusted annual rate of 3.93 million. Despite month-over-month declines in most regions, the Midwest and South showed year-over-year growth, pointing to regional resilience. Nationwide, home prices reached a record high for June, continuing a 24-month streak of annual price increases.

Market Trends and Inventory

Housing inventory stood at 1.53 million units, down 0.6% from May but up 15.9% compared to June 2024. The current inventory represents a 4.7-month supply, slightly higher than both May (4.6 months) and a year ago (4.0 months), giving buyers more options as summer progresses.

NAR Chief Economist Lawrence Yun noted that the housing market remains stuck at “cyclical lows” due to persistently high mortgage rates. “If mortgage rates were to decline to 6%, our analysis suggests an additional 160,000 renters could become first-time homeowners,” said Yun. “Expanding participation in the housing market will increase workforce mobility and drive economic growth.”

Home Prices Reach New Record

The median existing-home price in June climbed to $435,300, a 2% increase from June 2024, setting a new all-time high for the month. This marks the 24th consecutive month of year-over-year price gains.

• Single-family homes: $441,500 (+2% YoY)

• Condos/co-ops: $374,500 (+0.8% YoY)

Regional Sales Overview

• Northeast: Sales fell 8% MoM and 4.2% YoY. Median price: $543,300 (+4.2%)

• Midwest: Sales declined 4% MoM but rose 2.2% YoY. Median price: $337,600 (+3.4%)

• South: Sales slipped 2.2% MoM but rose 1.7% YoY. Median price: $374,500 (+0.3%)

• West: Sales rose 1.4% MoM but declined 4.1% YoY. Median price: $636,100 (+1.0%)

Buyer & Seller Activity

Homes stayed on the market for a median of 27 days, unchanged from May but slightly longer than 22 days a year ago.

• First-time buyers made up 30% of sales, holding steady from last month

• Cash sales rose to 29% of transactions, the highest this year

• Investor/second-home buyers dropped to 14%—the lowest level since September 2022

• Distressed sales remained low at 3%

Mortgage Rates & Affordability

As of July 17, the 30-year fixed mortgage rate averaged 6.75%, up slightly from the previous week but down from 6.77% a year earlier. High borrowing costs remain one of the key barriers to greater market activity.

What This Means for East Tennessee

While the national market faces challenges from elevated mortgage rates, East Tennessee continues to benefit from affordability, strong job growth, and consistent in-migration. The South as a whole showed a 1.7% increase in year-over-year sales, and regional price growth remains modest compared to other parts of the country.

Buyers in East Tennessee are still seeing opportunities, especially as inventory grows and competition from investors eases. For sellers, high prices and strong demand in local communities continue to support solid returns—especially when homes are well-positioned and priced strategically.

Whether you’re buying or selling in East Tennessee, now’s a great time to review your options and stay prepared for potential rate changes in the months ahead.

Krista Freshour

Realtor

865-776-9608

Information provided by National Association of Realtors