U.S. Housing Market Freezes in June: Sales Plummet, Prices Soar... A "Zombie" Market Under High Intrerest Rate

According to a report released this month by the real estate platform "realtor", the US housing market is currently trapped in a dilemma of falling sales, increasing inventory, but maintaining high prices. (Background: Why is Bitcoin said to be draining the value of real estate?) (Background: The Trump family DeFi project invested $10 million to buy ETH; the second son says Bitcoin is a better investment than real estate) Is the US housing market entering winter early? According to a report released this month by the real estate platform "realtor", the annualized sales volume of existing homes in the US in June was only 3.93 million units, the lowest since September 2024. Meanwhile, the national median listing price rose to $435,300, setting a new historical record. Sales volume hitting bottom, high interest rates become the biggest obstacle According to data released by the National Association of Realtors (NAR) for June, existing home sales decreased by 2.7% compared to May, far below the market estimate of a 0.7% decline. In terms of regional distribution, the Northeast, Midwest, and South of the US saw the largest declines, while the West showed slight recovery. It is worth mentioning that the average mortgage interest rate of 6.75% has increased pressure on first-time homebuyers, and homeowners with low-rate loans lack the willingness to sell, directly compressing the scale of available homes for sale. Inventory increases, prices still hit new highs In terms of the inventory of homes for sale, the number at the end of June reached 1.53 million units, a 15.9% year-on-year increase, equivalent to 4.7 months of inventory. "Realtor" further pointed out in the report that the active listing volume of homes increased by about 29% year-on-year, but homes averaged 53 days on the market before more than 20% of sellers lowered their asking prices. However, even so, the median listing price is still 2% higher than the same period last year, and it has risen for 24 consecutive months; the price of single-family homes is even higher, at $441,500, also showing a 2% year-on-year increase. Analysts point out that one significant reason for maintaining high prices is that investment purchases account for 27%, with higher-income groups filling the void left by regular homebuyers, supporting prices. Overall, the high interest rates in the US have kept potential buyers out, locking in homeowners who want to switch properties, resulting in a sharp freeze in transaction volumes. Although the market sees more listings, most are at high prices, and homeowners' attitudes are stagnant, limiting the speed of clearing inventory. According to NAR's assessment: "If mortgage rates drop to around 6%, the housing sales market is expected to recover significantly." Trump considers canceling capital gains tax on home sales Additionally, under the current US tax system, taxpayers selling their primary residences can enjoy a maximum exemption of $250,000 (individual) or $500,000 (joint filing), but any excess is subject to long-term capital gains tax rates (0% to 20%, depending on income) or short-term capital gains tax rates (equivalent to ordinary income tax rates). However, during the current downturn in the housing market, US President Trump stated on July 22 that the government is considering eliminating the capital gains tax on home sales to stimulate the real estate market. Trump mentioned during a press conference at the White House that if the Federal Reserve cuts interest rates, the necessity of eliminating the capital gains tax may decrease, but this action remains part of his policy considerations. Currently, this proposal has support from Republican lawmaker Marjorie Taylor Greene, who introduced the "No Tax on Home Sales Act" advocating for the complete elimination of federal capital gains tax on primary home sales, arguing that it would allow the public to retain more property. However, experts warn that this proposal may temporarily increase transaction volumes and economic vitality in the housing market but could also lead to fiscal deficits and inflation risks. At the same time, if companies reduce investments due to tariffs or exchange rate pressures, public willingness to purchase homes may decline, offsetting the benefits of the policy. Related reports: The Dubai government launches a real estate tokenization platform Prypco Mint: deployed on XRP Ledger, promising an annualized return of 8-12% for on-chain home purchases. Perspectives on real estate tokenization will reconstruct global wealth distribution. The Trump Group will enter the cryptocurrency industry; Trump's second son aims for digital real estate. RWA: "US June housing market freezes: sales deadlock, prices hanging high... a 'zombie' market under high interest rates." This article was first published in BlockTempo, the most influential blockchain news media.