US existing-home sales fell 1.7% in July, increasing the risk that homeowners buying their next property first may carry two homes longer than planned. Sales slipped to a seasonally adjusted annual rate of 4.06 million, while the median existing-home price rose 2% year over year to $434,100. Unsold inventory reached 1.54 million homes, representing 4.6 months of supply.
A slower-than-planned sale can leave move-up buyers carrying two properties, using temporary financing longer than expected, or cutting the price of the home they need to sell. Agents should assess that exposure before the client commits to the next purchase.
One delayed sale can put two transactions under pressure
Clients who buy first may be counting on proceeds from their existing home for cash reserves, debt repayment, or costs associated with the new purchase. Equity on paper does not determine when those funds will become available.
Before a client commits to buying first, agents can use current MLS data to estimate how quickly the departing home is likely to move. Days on market, price reductions, sale-to-list ratios, pending activity, and comparable sales provide the clearest picture.
Conditions vary sharply between metros, so the likely sale timeline should come from the client’s immediate market rather than national averages. A home in a market with growing inventory and frequent price cuts may require a different plan from one in a supply-constrained neighborhood.
Higher rates leave less room for delays
The average 30-year fixed mortgage rate was 6.67% as of Aug. 13, down slightly from 6.69% a week earlier. For owners replacing a substantially lower-rate mortgage, the new payment can leave less room in the household budget for overlapping housing costs.
Bridge loans and home equity borrowing can provide temporary liquidity, but qualification, rates, fees, and repayment terms vary. Agents should have the client’s lender confirm how additional borrowing affects the purchase rather than assume existing equity solves the financing gap.
A home-sale contingency can instead make the purchase dependent on selling the buyer’s existing property. Whether a seller will accept one depends on the property, contract terms, and local competition.
Build the fallback before making the offer
A buy-before-sell client should know what happens if the old home remains unsold for 30, 60, or 90 days. Agents can model those scenarios before an offer is submitted, including the cost of both properties and any temporary debt.
The listing strategy also needs a response to weak demand. Showing activity, buyer feedback, competing inventory, and offers can help establish when a price adjustment is warranted instead of waiting until overlapping housing costs force the decision.
Buying before selling can work when the financing, reserves, and expected sale timeline leave enough room for delays. If they don’t, one slow listing can put both transactions under financial pressure.