Courtesy of the National Association of REALTORS®.
“Near-zero” growth in home prices and housing inventory at its highest level since the COVID lockdown have put homebuyers in their “best position in more than five years,” the National Association of REALTORS® said.
Existing-home sales rose 2% month over month in July and 0.8% year over year to a seasonally adjusted annual rate of 4.01 million, NAR said in its latest Existing-Home Sales Report.
The median existing-home sales price rose just 0.2% year over year to $422,400, its 25th consecutive annual increase. Month over month, it was down 2.9% from $435,300 in June.
“The ever-so-slight improvement in housing affordability is inching up home sales,” NAR Chief Economist Lawrence Yun said. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”
Inventory, meanwhile, was 1.55 million homes, which represented a 0.6% monthly gain and 15.7% surge from July 2024’s 1.34 million homes. This represented a 4.6-month supply of unsold homes, down from 4.7 months in June and up from four months in July 2024.
Homes typically remained on the market for 28 days in July, down from 27 days in June and up from 24 days in July 2024.
“Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price,” Yun said. “Current inventory is at its highest since May 2020, during the COVID lockdown.”
The 30-year, fixed-rate mortgage averaged 6.72% in July, according to Freddie Mac. That’s down from 6.82% in June and 6.85% a year earlier.
“Some industry insiders say if mortgage rates dip below 6.5%, we could see an acceleration in buyer activity, and I agree, as it would echo the increase observed last fall,” Coldwell Banker Affiliates President Jason Waugh said. “For homeowners contemplating a sale, this is a strategic moment to prepare. Many buyers have been waiting for favorable conditions, and a number are ready to re-engage.”
By property type, single-family home sales rose 2% month over month and 1.1% year over year to a seasonally adjusted annual rate of 3.64 million. The median existing single-family home price was $428,500, down 2.9% from $441,500 in June and up 0.3% year over year.
Existing condominium and co-op sales were at a rate of 370,000 units, representing a 2.8% monthly gain and a 2.6% annual decline. The median existing-condo price was $362,600, down 3.2% from $374,500 in June and down 1.2% from July 2024.
On a regional basis, month-over-month sales rose in the Northeast, South and West and fell in the Midwest. Year-over-year sales rose in the South, Northeast and Midwest and fell in the West.