cawacko
Well-known member
Good news if you're a home owner. Not so much if you desire to become one.
Home prices hit a new high in June for the second straight month, the latest sign that the housing market is unaffordable to millions of Americans.
The spring home-buying season, usually the busiest time of year for the housing market, was a dud this year. Home sales declined in June for the fourth straight time on a monthly basis. The combination of high prices and elevated mortgage rates has made homeownership less attractive to renters and deterred current homeowners from moving.
But low inventory of homes for sale in much of the country is pushing prices higher. The national median existing-home price in June rose to $426,900, a record in data going back to 1999 and a 4.1% increase from a year earlier, the National Association of Realtors said Tuesday. Prices aren’t adjusted for inflation.
While the number of homes on the market has risen in recent months, it is still well below historical norms, which can lead to bidding wars for desirable properties. More than one-third of home sales in June went for more than their list price, according to real-estate brokerage Redfin. Sales of luxury homes rose in June compared with a year earlier, while sales of cheaper homes declined, which also pushed up the median price, NAR said.
Sales of previously owned homes in June fell 5.4% from the prior month to a seasonally adjusted annual rate of 3.89 million, NAR said. On an annual basis, existing-home sales, which make up most of the housing market, also fell 5.4%.
“We are seeing more inventory, but we are not seeing increased sales,” said Lawrence Yun, NAR’s chief economist. “We may be moving away from a sellers’ market towards balance, and may be entering a buyers’ market.”
Economists surveyed by The Wall Street Journal had estimated a monthly drop of 3.9%.
Home-buying affordability fell last fall to the worst level since 1985, according to NAR, and has hovered near multidecade lows since then.
Affordability could improve slightly in the coming months, economists say. Mortgage rates fell last week to their lowest level since mid-March, according to Freddie Mac. And the pace of home-price growth is slowing as inventory rises.
Nationally, there were 1.32 million homes for sale or under contract at the end of June, up 3.1% from May and up 23.4% from June 2023, NAR said.
At the current sales pace, there was a 4.1-month supply of homes on the market at the end of June, the highest level since May 2020.
Inventory has risen the most year over year in the South, according to Realtor.com.
Ray Hereford listed a three-bedroom house in The Villages, Fla., in December for $699,000, but dropped the price after it sat on the market, he said. He sold the house in June for $530,000.
The house faced competition from nearby newly built homes, Hereford said. “I thought it would sell a lot faster,” he said.
Inventory remains more limited in the Midwest and Northeast. Russell and Nicole Chiles got three offers for their house in Chagrin Falls, Ohio, on the first day it went on the market and sold it in June for $630,000, almost 10% above the listing price. Few similar homes in the area had sold recently, which increased the demand, Russell Chiles said.
“They don’t pop up too often in the market, I guess,” he said.
In western Ohio, where the Chileses moved for a new job, they had trouble finding a home that met their needs. They bought a home that hadn’t yet gone on the market, after a referral from a co-worker.
The typical home sold in June was on the market for 22 days, up from 18 days a year earlier, NAR said.
News Corp, owner of the Journal, also operates Realtor.com under license from NAR.
U.S. Home Prices Hit Record in June for Second Consecutive Month
Home sales slowed again, ending a disappointing spring selling seasonHome prices hit a new high in June for the second straight month, the latest sign that the housing market is unaffordable to millions of Americans.
The spring home-buying season, usually the busiest time of year for the housing market, was a dud this year. Home sales declined in June for the fourth straight time on a monthly basis. The combination of high prices and elevated mortgage rates has made homeownership less attractive to renters and deterred current homeowners from moving.
But low inventory of homes for sale in much of the country is pushing prices higher. The national median existing-home price in June rose to $426,900, a record in data going back to 1999 and a 4.1% increase from a year earlier, the National Association of Realtors said Tuesday. Prices aren’t adjusted for inflation.
While the number of homes on the market has risen in recent months, it is still well below historical norms, which can lead to bidding wars for desirable properties. More than one-third of home sales in June went for more than their list price, according to real-estate brokerage Redfin. Sales of luxury homes rose in June compared with a year earlier, while sales of cheaper homes declined, which also pushed up the median price, NAR said.
Sales of previously owned homes in June fell 5.4% from the prior month to a seasonally adjusted annual rate of 3.89 million, NAR said. On an annual basis, existing-home sales, which make up most of the housing market, also fell 5.4%.
“We are seeing more inventory, but we are not seeing increased sales,” said Lawrence Yun, NAR’s chief economist. “We may be moving away from a sellers’ market towards balance, and may be entering a buyers’ market.”
Economists surveyed by The Wall Street Journal had estimated a monthly drop of 3.9%.
Home-buying affordability fell last fall to the worst level since 1985, according to NAR, and has hovered near multidecade lows since then.
Affordability could improve slightly in the coming months, economists say. Mortgage rates fell last week to their lowest level since mid-March, according to Freddie Mac. And the pace of home-price growth is slowing as inventory rises.
Nationally, there were 1.32 million homes for sale or under contract at the end of June, up 3.1% from May and up 23.4% from June 2023, NAR said.
At the current sales pace, there was a 4.1-month supply of homes on the market at the end of June, the highest level since May 2020.
Inventory has risen the most year over year in the South, according to Realtor.com.
Ray Hereford listed a three-bedroom house in The Villages, Fla., in December for $699,000, but dropped the price after it sat on the market, he said. He sold the house in June for $530,000.
The house faced competition from nearby newly built homes, Hereford said. “I thought it would sell a lot faster,” he said.
Inventory remains more limited in the Midwest and Northeast. Russell and Nicole Chiles got three offers for their house in Chagrin Falls, Ohio, on the first day it went on the market and sold it in June for $630,000, almost 10% above the listing price. Few similar homes in the area had sold recently, which increased the demand, Russell Chiles said.
“They don’t pop up too often in the market, I guess,” he said.
In western Ohio, where the Chileses moved for a new job, they had trouble finding a home that met their needs. They bought a home that hadn’t yet gone on the market, after a referral from a co-worker.
The typical home sold in June was on the market for 22 days, up from 18 days a year earlier, NAR said.
News Corp, owner of the Journal, also operates Realtor.com under license from NAR.
