#HousingMarket #HomePrices #RealEstateTrends
Home Prices Begin to Cool as Active Listings Jump 35%
The latest housing market update reveals a significant shift in trends. Over the four weeks ending on June 23, homes, on average, sold slightly below their asking prices, marking a change from a year ago when homes were selling at the listed price and two years ago when they sold above asking price.
While nearly two-thirds of homes still sold over asking price last month, this percentage is the lowest since June 2020. The annual growth rate of home prices decreased 4% in May and 5% in April, the slowest pace in seven months. Despite this, home prices remain higher than they were a year ago, indicating a gradual cooling in the market.
Reports suggest that the intensity in price gains is diminishing, prompting some home sellers to adjust their expectations after a stagnant spring market. The reduction in pricing pressure is evident as more homes are hitting the market, with total active listings now 35% higher than a year ago.
Mortgage rates continue to hover above 7%, contributing to the evolving dynamics in the housing sector. The S&P Case-Shiller index indicates a 6.3% increase in home prices in April compared to the same period in 2023. This upward trend in prices has led to homes now being 47% more expensive than early 2022, with the sale price reaching 7.5 times the median household income.
An early look at forthcoming home price data by ICE Mortgage Technology reveals a further decline in annual home price growth to 4.6% in May. This downtrend aligns with the broader trend of cooling prices as supply gradually increases. Despite the recent uptick in inventory levels, they remain over 30% lower than pre-pandemic levels.
Marije Kruythoff, a Redfin agent in Los Angeles, highlights the nuanced nature of the current market dynamics, emphasizing that successful transactions depend on various factors such as the condition and location of the property. This evolving landscape reflects a market in transition, where buyers seek deals amidst cooling trends, while sellers adjust their expectations in response to changing conditions.
Original Article: https://www.cnbc.com/2024/06/27/home-prices-begin-to-cool-as-active-listings-jump-35percent.html
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