NAR chief economist Lawrence Yoon attributed the overall growth to the improvement in housing stock, which rose 7.3% month-over-month to 1.32 million units. The unsold inventory is 2.6 months at current sales rates, slightly higher than the 2.5 months recorded in June, but lower than the 3.1 months in July 2020.
“We are seeing stocks starting to rise, which will reduce the intensity of multiple supply,” Yun said. “Most of the growth in home sales is still in the high end markets, while the mid and low end regions are not seeing that much growth because there are still too few affordable homes for newcomers.”
More details: Finding a new home gets even harder – Freddie Mac
The average secondary home price for all home types rose 17.8% year over year to $ 359,900, representing a 133 consecutive month increase. The average price of an existing single-family home jumped 18.6% to $ 367,000, while the price of an existing apartment rose 14.1% to $ 307,100 in July.
“As average selling prices remain close to record highs, there are potential buyers who are undervalued, and first-time buyers tend to be particularly sensitive to these overpriced. They are also competing with an increased share of cash buyers – up to 23% of all buyers, up from 16% a year ago, ”said Kahn.