Existing home sales plummeted to a six-month low as the median sales price soared to the highest price ever recorded for the second consecutive month, according to data from the National Association of Realtors (NAR).
Last month, total existing home sales dropped by 5.4% from May to a seasonally adjusted annual rate of 3.89 million in June. Year-over-year, sales also fell by 5.4% from 4.11 million recorded in June 2023.
The median existing-home price for all housing types in June was $426,900, an all-time high and an increase of 4.1% from the $410,100 recorded one year ago. All four U.S. regions registered price gains.
In this environment, the total housing inventory was 1.32 million units, up 3.1% from May and up 23.4% from the 1.07 million level of June 2023. Unsold inventory sits at a 4.1-month supply at the current sales pace, up from 3.7 months in May and 3.1 months in June 2023 – the last time unsold inventory posted a four-month supply was May 2020 when it was 4.5 months.
“We’re seeing a slow shift from a seller’s market to a buyer’s market,” said NAR Chief Economist Lawrence Yun. “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
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its like a faucet was turned off…sales have dropped so dramatically that I am shocked as a broker for many years
List track showing 40k, not an offer yet. Reduced 50k last Saturday 🤷♂️
The market can only bare so much then it exceeds value..
Due to the pandemic years where home prices sky rocketed and pent up demand for homes escalated which increased home prices beyond their normal increase. Usually the norm is between 3 to 5% on average year over year. After this period we started seeing the reduction in demand due to the increased prices and the increased interest rate. However, when you look at people who are looking to sell their homes it has increased and is marked by the increase in inventory of homes. Many of those sellers are also looking to buy which means that we have buyers waiting on getting offers on homes so they can move into the buyer position. All in all we are still experiencing a correction in most markets and it will take time for all this to shake out.
In Northern Illinois prices are still
Increasing, we still have multiple offers. Appraisers however are more conservative often appraising under contract price.
Scarcity creates value. Multiple offers can drive up the contract price. Remember, what a property opens for, what the same property sells for, and the market value for the same property can be three altogether different sums. A skilled appraiser will be able to explain to an underwriter the difference, the Appraisal Gap, if you will.
What goes up, must come down, spinning wheels. etc. It’s just an adjustment which happens over time. Everyone thinks their house or condo is worth xyz, but buyers are being priced out with higher mortgage rates, taxes, insurance costs, homeowner fees escalating, Market (supply and demand) will determine as always.
I’ve been practicing real estate as an independent broker for 24 years. The market is cyclical. These other agents are correct. What goes up, can also come down. And we should be welcoming this!
Sellers and their pundits always blame the rate. Rates aren’t the problem at all. If anything they’re making other parts of the economy much stronger. Have you seen how much money you can make just letting cash sit idly in a savings or CD these days??
The problem with real estate these days are the OUTRAGEOUSLY EXPENSIVE PRICES! Anyone who’s still buying homes, especially second or vacation type homes is insanely stupid. The reason showings have dropped off so severely is most intelligent buyers realize that this market makes no sense anymore and are staying put to wait for prices to start falling.
Mark my words… this time in 24 months we will all be complaining about too much inventory. Hopefully prices will be down 10% by then.
DROP THE PRICES!!!!!!!!!!!!! Covid is over
Exactly!! Drop the prices they are ridiculous use your head and save your business