Active listings of U.S. residential properties slowed in July for the fourth consecutive month in and fell below pre-pandemic levels for the first time since April 2022, according to new data from Realtor.com.
Last month, the active housing inventory was 47.8% below the July 2019 level. Year-over-year declines were recorded for both newly listed homes (-20.8%) and pending listings (-12.6%) – although the pending listings figure was smaller June’s -16.7% decline and far removed from December’s peak decline (-36.9%). Active inventory decreased in 38 out of 50 of the largest metros compared to last year, with the only upticks recorded in Southern region led by New Orleans (+39.6%), San Antonio (+34.5%) and Memphis (+33.2%).
July’s median list price of $440,000 was down by 0.9% year-over-year, marking the second consecutive month of declines. The median list price was also down 2% from its record high of $449,000 in June 2022.
“While a second monthly year-over-year decline in list prices bodes well for potential buyers, the ongoing lack of homes available for sale continues to prop up home prices and will keep declines relatively modest for the remainder of the year,” said Danielle Hale, chief economist for Realtor.com. “Interest rate hikes continue to further cut into buyers’ purchasing power, although they appear to have adapted to the higher mortgage rate environment faster than sellers, many of whom are still on the sidelines, locked in to lower interest rates and unwilling to cash in their home’s equity to purchase another. That’s putting a damper on home sales, which will likely post their smallest annual tally this year in over a decade.”
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