The inventory recovery continued to make strides this past week, while year-over-year home-price growth held stable for the third straight week, according to the latest Weekly Housing Trends View for the week ending June 18, released from realtor.com® this past week.
Key findings from the report:
- The median listing price grew by 16.9% over last year, holding steady for the third week in a row between June 4 and June 18, 2022.
- Home price growth remained faster than usual, at a double-digit pace for the 27th consecutive week. While this ongoing momentum led realtor.com to upwardly revise its 2022 home price forecast, price increases are expected to cool as more inventory comes on the market and higher mortgage rates cut into buyer purchasing power.
- New listings were up 6% from one year ago. Many home sellers continue to benefit from rising home prices and fast-selling homes. These conditions have prompted a growing number of homeowners to list this year than last during 11 of the last 12 weeks.
- Active inventory increased 21% year-over-year in the latest accelerated improvement. The number of for-sale homes was roughly even with 2021 levels at the beginning of May and the gains have mounted each week since.
- Inventory remains nearly 50% below levels at the onset of COVID. This indicates overall inventory growth is proceeding at a steady but slow rate.
- Homes spent 4 days less on the market than this time last year, consistent with last week’s trend. More listings will eventually cool the ultra-fast pace of sales, but for now, homes continue to move faster-than-ever-before. Time on market hit another record-low in May, a trend that’s likely to repeat itself in June, when buyers typically snatch up homes at the year’s quickest pace.
- Rent is still increasing. A May report found that median rent in the top 50 metros reached $1,849, a 15.5% increase year-over-year. This means renters are feeling the brunt of inflation as much as buyers.
“While home prices keep climbing at an usually fast double-digit pace, the fact that the growth rate again held stable represents some progress relative to earlier this year. Still, affordability is increasingly a challenge for buyers hoping to take advantage of rising numbers of for-sale homes,” said Danielle Hale, chief economist for realtor.com®. “And it’s not just buyers grappling with higher prices, as rents are also soaring to new highs, adding to the financial strain of making a move in today’s inflationary economy. Although some people may feel stuck between a rental rock and a homeownership hard place, buying could be the more attractive option for those looking to lock-in a predictable monthly payment – particularly in relatively lower-priced options in areas like many of our May Hottest Markets.”
For more information, read the full report here.