According to the June report, existing-home sales are on pace to reach 5.37 million units for the year, up 9.8 percent over June 2009. Despite the annual increase, markets saw a slight drop compared to May activity. Lawrence Yun, NAR chief economist, said these swings are understandable. "June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months," he said.

Freddie Mac surveyed lenders in June and reported record low commitment rates for 30-year, conventional fixed-rate mortgages. Mortgage rates dropped to an average of 4.74 percent, down significantly from 5.49 percent offered in June 2009.

NAR President Vicki Cox Golder says small fluctuations in the market are expected. "Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value Realtors® bring to buyers and sellers in this market."