In spite of a fairly strong purchasing pace, sales of existing homes dipped 1.7% in June over May and 2.2% under June of last year. Both single-family and condo unit sales were down at 1.5% and 3.3% respectively.

Total inventories did see a slight gain - 1.0% or 1.93 million units - which is just about where they stood last June. But with a shortfall of homes for sale at the entry level, this in-demand segment is being challenged. For instance, first time buyers in June accounted for 35% of sales compared to 31% last year.

The median single-family home price moderated 4.5% year-over-year to $288,900. The Wells Fargo Economics Group anticipate prices to continue to ease but "strengthening demand in the face of limited supply will keep home price appreciation firmly in positive territory in coming months."

Also, existing homes are selling rather quickly. The National Association of Realtors reported the 56% of the homes sold during June were on the market for less than a month.