More Houses Are For Sale Than at Any Time Since the Pandemic

The housing market has seen a slight uptick in sales in July, with existing home sales increasing by 2% from the previous month, according to the National Association of Realtors (NAR). This increase represents a 0.8% year-over-year growth, with total home sales expected to reach 4 million units by the end of the year.

One of the contributing factors to this increase in sales is the slight improvement in housing affordability, with mortgage rates having decreased over the past few months. Lawrence Yun, the chief economist at NAR, mentioned that this improvement in affordability is helping to drive home sales up.

Jason Waugh, the President of Coldwell Banker Affiliates, noted that the small uptick in sales could represent a shift in buyer behavior, with more buyers entering the market out of preference rather than necessity. This change in buyer behavior is a positive sign for the housing market.

Despite the positive sales report, prospective buyers still face challenges in the market. Mortgage rates remain high, and there are concerns about a cooling economy that are keeping some buyers on the sidelines.

On the supply side, housing inventory has improved, with current inventory standing at 1.55 million homes. This represents a 4.6-month supply of homes at the current sales pace, moving the market towards a more balanced state between supply and demand. The median sales price in July was $422,400, which is relatively unchanged from the same time last year.

Regional differences in the housing market are becoming more apparent, with sales increasing in every region except the Midwest. The Northeast saw the largest growth in sales, with an 8.7% increase month-over-month. On the other hand, the Midwest, historically known for its affordable homes, saw a decline of 1.1% in home sales from the previous month.

Overall, the housing market is showing signs of improvement, with more homes available for sale and a slight increase in sales. Regional differences in pricing and inventory trends are becoming more pronounced, highlighting the importance of local insights and strategies in today’s real estate landscape.