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Sales of existing homes – which include single-family homes, townhouses, condominiums and co-ops – rose 2% in July from the previous month, marking two consecutive months of increases, according to a report from the National Association of Realtors. .
“There has been a shift in the market from super heated to still very strong,” said Lawrence Yun, chief economist of NAR.
A consistently tight supply of inventory has pushed home prices higher over the past year, but that picture is improving slightly, Yun said. The inventory of unsold homes rose 7.3% from June to July, but it was still down 12% from a year ago, NAR reported. The unsold inventory is at a 2.6 month supply at the current sales rate. A balanced market corresponds to a housing supply of around 6 months.
“We are seeing stocks start to rise, which will reduce the intensity of multiple offers,” Yun said. “Much of the growth in home sales is still happening in high-end markets, while mid-to-lower tier areas aren’t seeing as much growth because there are still too few starter homes available.”
The median price of an existing home in July was $ 359,900, up 17.8% from a year ago and marked 113 consecutive months of year-over-year gains. But the price hike for July is down from increases of 20% or more that have occurred in the market over the past year.
“While we shouldn’t expect home prices to drop over the next few months, it is possible that they will level off as inventories continue to gradually improve,” Yun said.
But a lot of people are still overpriced. First-time buyers continue to struggle in this market and push rental rates up as they give up buying, Yun said. The share of first-time buyers in July was 30%, against 31% in June and 34% in July 2020.
“Despite the current challenges of today’s housing market, including limited inventory, lightning-fast home sales, and competition from investors with generous pockets, many buyers are finding ways to stick it out. to find and close a house, ”Hale said.
Still, she said, many potential buyers are considering putting their research on hold. But, Hale said, they need to know there is usually a seasonal hiatus in competition before fall.
“While we didn’t see this sweet spot last fall as shoppers made up for lost time due to blockages, there are signs we’ll see it this year,” she said.
Yun said he heard anecdotal reports from NAR operatives that fewer homes are being sold for more than asking than they were at the start of the year, and there is less intensity around the wars in the area. ‘auction.
He expects there will be an inflection point this year where inventory will be larger than the year before.
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