Sales of previously occupied US homes registered an uptick in July, aided by a modest decline in mortgage rates, slower home price growth and the largest supply of properties on the market in five years.According to the National Association of Realtors (NAR), existing home sales rose 2% from June to a seasonally adjusted annual rate of 4.01 million units. That figure also represented a 0.8% increase compared with July last year, surpassing economists’ expectations of a 3.92 million pace, data from FactSet showed, reported AP.Home prices continued their upward run for the 25th straight month, but the rate of growth slowed considerably. The national median sales price inched up just 0.2% year-on-year to $422,400. “The ever-so-slight improvement in housing affordability is inching up home sales,” said Lawrence Yun, NAR’s chief economist. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”The US housing market has struggled since 2022, when mortgage rates began climbing from historic lows, leading to the lowest sales level in nearly three decades last year. The 2024 spring homebuying season, traditionally the busiest for real estate, failed to pick up momentum as high mortgage rates deterred many prospective buyers.The average rate on a 30-year mortgage has remained high this year, though it dropped to a 10-month low of 6.58% last week. Many of July’s purchases were likely contracted in May and June, when rates ranged from 6.76% to 6.89%. In July, mortgage rates eased further, briefly touching 6.67%.The slowdown in sales has coincided with an increase in unsold homes. NAR data showed 1.55 million unsold properties at the end of July, up 0.6% from June and 15.7% from July last year — the highest in five years, though still short of the pre-pandemic norm of around 2 million homes. “Now, with more inventory buyers (are) in a much better position to negotiate for better prices,” Yun noted.At the current sales pace, July’s inventory represents a 4.6-month supply, down slightly from 4.7 months in June but above the 4-month supply recorded last year. A balanced market between buyers and sellers is typically seen at 5-6 months of supply.Properties are also taking longer to close. Homes remained on the market for an average of 28 days in July, compared with 24 days in the same month a year ago, NAR said.