Activity in terms of net new listings placed on the market increased 2.6% versus June 2023, but is still not enough to drive numbers back up to historical norms.
In addition to the pressure of excess inventory, the median price of all single-family listings in the United States grew 3% on a year-over-year basis. This headwind for prospective buyers continues to drive contract activities downwards, as they also face macroeconomic pressures from higher-for-longer interest rates and inflation.
Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:
“As predicted, we saw a slow start to the summer housing market in June. Although demand exists from prospective homebuyers and we saw a slight uptick in new inventory listings, realized selling activity remains low due to continuously high interest rates and affordability pressures. Additionally, there was a continued increase in home asking prices on a year-over-year basis despite an already record-high average pricing. We have concluded that buyers are reserved and find themselves in a wait-and-see situation, while they are eager to see a decrease in macroeconomic pressures and an increase in affordable housing options.
On the upside, if we compare June’s contract volume to the same period last year, which was up 4.7%, we saw growth. Therefore, we are cautiously optimistic that once those macroeconomic headwinds no longer hinder buyers’ capabilities, we can see home buying activity start to normalize and return to historical levels. For now, as we enter July, we can expect the market to remain quiet as potential buyers are waiting for prices to drop.”
More in the full report.
The Market Pulse Report is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform, covering 22 listing-derived metrics and comparing data between June 2023 and June 2024.