U.S. Existing Home Sales (July 2026)

Existing home sales fall for a second consecutive month in July

• Existing home sales fell 1.7% month-on-month (m/m) to 4.06 million units (annualized) in July – in line with market expectations.
• Sales in the single-family segment fell 1.9% to 3.69 million, while sales in the smaller condo/co-op segment remained unchanged at 370,000 for the sixth month in a row.
• Activity was mixed across the regions, with sales falling 3.1% in the South and 2.0% in the Midwest, while remaining unchanged in the West, and rising only in the Northeast (+2.0%). The latter region is recovering from a slump recorded earlier this year.
• Unadjusted inventory levels stood at 1.54 million, down 1.9% from June and 0.6% lower from July 2025. Measured at the current sales rate and seasonally adjusting, unsold inventory stood at 4.2 months' supply (barely in balanced territory of 4-6 months), down slightly from 4.3 in June. 
• The median home price was up 2.0% year-on-year – a mild deceleration from 2.3% in the month prior. 
  
   
   

Key Implications

• Existing home sales declined for a second consecutive month in July, pointing to a soft start to the second half of the year. More broadly, housing activity remains subdued by historical standards, hovering near levels seen during both the Global Financial Crisis and the pandemic-era housing market correction. Affordability continues to be the primary constraint, with elevated home prices and the recent increase in mortgage rates limiting purchasing power for many prospective buyers. At the same time, inventory remains relatively tight and only marginally within balanced territory, helping to support home prices despite soft demand.
• The financing backdrop is likely to remain a headwind over the near term. Mortgage rates have drifted back toward the 6.7%-6.8% range alongside higher Treasury yields, adding another hurdle for buyers already facing affordability constraints. With the Federal Reserve unlikely to provide meaningful relief anytime soon and home prices continuing to edge higher amid a still-tight inventory backdrop, existing home sales are likely to remain subdued through the remainder of the year.
  
   
  
  
   

Disclaimer

This report is provided by TD Economics. It is for informational and educational purposes only as of the date of writing, and may not be appropriate for other purposes. The views and opinions expressed may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The report does not provide material information about the business and affairs of TD Bank Group and the members of TD Economics are not spokespersons for TD Bank Group with respect to its business and affairs. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. This report contains economic analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. The Toronto-Dominion Bank and its affiliates and related entities that comprise the TD Bank Group are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.