Dave Gallagher

May data shows new home sales fell 7.3% month-over-month and 6.8% year-over-year as affordability concerns and economic uncertainty weighed on consumers.

Though pending home sales continue to stay ahead of last year's pace, elevated rates and rising inflation are sapping momentum heading into the summer months.

Household growth is slowing, people are moving less often and immigration is falling — all factors that may further drive down demand in the years ahead.

Several consecutive months of falling asking prices and rising pending sales indicate that sellers are pricing to meet the market — and finding buyer interest.

Job growth was far more sluggish than expected in June — but probably not enough to panic a Federal Reserve that remains concerned about rising inflation.

The overbidding trend driving up luxury home prices is expected to continue through 2026 as the AI boom brings more high-salaried home shoppers into the city.

The market should continue to plod along, with slight gains expected compared to last year as buyers and sellers continue “adjusting and showing up.”

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Existing home sales fell in June, cutting short the momentum seen a month earlier. Consumer caution — and elevated mortgage rates — are likely culprits.

As more baby boomers sell, localized “Silver Tsunamis” may improve affordability for some buyers, but overall effects will be modest, recent research suggests.