The total number of homes for sale in June fell 13.6 percent from June of last year to 1.08 million. Inventory, particularly of single-family homes, reached its lowest level on record in June at 960,000 units.

The National Association of Realtors said Thursday that used-home sales fell 3.3 percent in June to 4.16 million annual sales.

That's how many homes would be sold for the year if each month sold at the same pace as June. These numbers are seasonally adjusted.

The pace of home sales was the slowest six months since January 2023.

Also, the 4.16 million figure was the slowest pace of home sales in June since the 2009 subprime mortgage crisis.

The drop in sales was below the expectations of Wall Street economists. They predicted that existing home sales would total 4.2 million in June.

Compared to June 2022, home sales were down 18.9%.

KEY DETAILS The median existing-home price of $410,200 in June was the second-highest price recorded by NAR since it began tracking the data in 1999.

Prices peaked last June when the median price of a resale home was $413,800.

The number of homes on the market was flat in June at 1.08 million. Of those, 960,000 single-family homes were put on the market. This is the lowest level for June since 1982, when NAR began tracking the data.

Homes listed for sale stayed on the market for an average of 18 days, unchanged from the previous month. Last June, homes stayed on the market for just 14 days.

Existing-home sales were mixed across the country - home sales in the Northeast climbed 2 percent in June, but were flat or even down in other parts of the country.

All-cash buyers accounted for 26 percent of sales. Individual investors or second-home buyers accounted for 18 percent. About 27 percent of homes were sold to first-time buyers.

Overall: The real estate market has recovered, but with inventories at historic lows, the big question is whether the recovery can be sustained.

With mortgage rates hovering around 7%, home sellers continue to hold on to their homes.

Builders are responding to the lack of inventory by ramping up home construction, but new housing units may not be enough to address the shortage of homes for sale.

As the NAR points out, home prices are also near all-time highs, and combined with high interest rates, many Americans can't afford to buy a home.

Realtors say "the buyer's market is very tough in the current environment," said Lawrence Yun, chief economist for the National Association of Realtors.

Yun added that "there simply aren't enough homes for sale" and that the market could "easily absorb" even if the inventory doubled.

Homebuyers still have to deal with multiple offers, with one-third of homes selling for more than the list price, Youn said.

What are they saying?" Existing-home sales fell more than expected and are likely to remain subdued until mortgage rates slow or inventory improves, Erik Johnson, senior economist at BMO Capital Markets, wrote in a report.

"Perhaps price stabilization will be enough to convince more homeowners to put their homes on the market, but the fortunes of existing-home inventories and mortgage rates will likely remain linked for the foreseeable future," he added.

MARKET REACTION Stocks were mixed in early trading Thursday. the yield on the 10-year Treasury note rose above 3.8%.