IN US housing market is still not “good for the buyer”, although, according to industry experts, after a tumultuous year, it is finally moving in that direction.
According to Daniel Hale, chief economist at Realtor.com, the July housing market continues to “demand quick decisions and big money” from buyers.
However, Hale predicts that “the usual seasonal fall in prices may return this year” – and earlier than usual.
But while prices are still rising. Over the past week, Hale said median listing prices rose 10.1% from a year ago, “marking 47 consecutive weeks of double-digit price increases.”
The pace of price increases remains unusually high, Hale said, adding that median listing prices even hit their fifth consecutive all-time high in June at around $ 385,000.
By next week, however, buyers may begin to see clear increases in prices, Hale said. Moreover, in July or August, prices may even “fall from summer highs”. In 2020, prices didn’t drop until November, Hale said.
To date, the total housing stock is still declining, by about 39% compared to last year. However, while “there is still a shortage of homes for sale in the housing market, the steady growth in the number of sellers is helping.”
On the eve of the July 4th holiday, the number of new listings entering the market fell by about 3%, but experts expect this to be temporary.
“We usually see fewer new sellers before the holiday, and this year was no different,” Hale said.
According to Sabrina Speianu, senior economic research analyst at Realtor.com, the markets that did see the largest new home growth on the list compared to last year were Milwaukee, San Jose and Cleveland.
Meanwhile, Hale said active listings are still flying off the market, about 23 days faster than a year ago.
However, this may change in the coming weeks.
“The gap between the markets this year and last year is narrowing as we get closer to the point where time in the market in general begins to increase, and this compares to 2020, when listings moved at an uncharacteristically faster rate at the end of the year.” said Hale.