Introduction
A new report from Realtor.com, covering the entire month of June, has been released. This report focuses on various aspects of the housing market including inventory levels, asking prices, and pending home sales.
Inventory Levels
There is a 36.7% increase in houses for sale in June 2024 compared to June 2023. This marks the eighth consecutive month of annual inventory growth. Despite the increase, inventory is still down by 32.4% compared to typical June levels from 2017 through 2019. Inventory increases were noted across all regions, with the South experiencing the highest increase at 48.9%. However, every region’s inventory remains significantly lower than pre-pandemic levels.
Home Prices
The national average asking price is $444,000, slightly below June 2023’s $445,000. Asking prices have increased by 59% compared to June 2017, indicating a substantial rise in home prices over the past seven years. Regionally, asking prices decreased in the South by 1.8%, while the Northeast saw a 5.6% increase.
Pending Home Sales
Pending home sales rose by 2.4% in June 2024 compared to June 2023. This increase is consistent with the previous month’s growth. Despite fewer homes for sale, pending home sales are higher than pre-pandemic levels but lower than during the peak years of 2020-2022.
New Listings
New listings increased by 6.3% in June 2024 compared to June 2023, marking the eighth consecutive month of year-over-year increases. Despite the recent increase, new listings are still significantly lower than pre-pandemic levels, contributing to lower inventory overall.
Time on Market
The typical home spent 45 days on the market in June 2024, two days longer than June 2023 but eight days less than the average June from 2017 to 2019. Homes in some regions, such as Sacramento, are selling quickly if priced appropriately and requiring minimal work.
Mortgage Rates
As of Thursday, the average 30-year fixed mortgage rate decreased to 6.85%, a four-month low, which may spur home-buying activity. This rate drop is attributed to a lower-than-expected inflation report, with core CPI increasing only 0.1% in June.
Price Reductions
The share of price reductions rose to 18.3% in June 2024, marking a five-year high for June. This indicates some easing in home price growth pressure.
Conclusion
The Realtor.com report highlights a significant increase in inventory and pending home sales, though levels remain below pre-pandemic norms. Asking prices have stabilized, and mortgage rates have seen a recent decrease, potentially influencing market dynamics in the coming months. Regional variations continue to play a crucial role in the housing market’s overall performance.
