Listing prices continue their upward trend over last year, but the good news for buyers is experts expect them to top out in the near-term. That’s according to the latest Weekly Data Report from realtor.com®, which shows the median listing price advanced by 16.6% over last year, now in its 31st consecutive week of double-digit yearly gains.
According to the report, while weekly asking price trends have yet to offer buyers much relief, other data are signaling that rising inventory is shifting the balance of the housing market. For instance, in June, the share of listings with price cuts nearly doubled year-over-year, and seasonally, markets typically see the median home listing price top out around this time of year, and this year is likely to be typical in that respect, realtor.com® reported.
Additional key findings from the week ended July 16:
- New listings—a measure of sellers putting homes up for sale—declined 3% from one year ago, slipping for the second week in a row. This suggests that prospective sellers are reacting to the rapid run-up in mortgage rates on buyer demand and home sales. However, market conditions remain largely in sellers’ favor in many markets, as home shoppers continue to compete for fewer for-sale homes than pre-COVID, helping to shorten the typical home sale timeline and keep prices elevated.
- Active inventory continued to grow, rising 29% above one year ago and remaining in the 28-29% range for the third straight week as fewer new sellers entered the market. Still, inventory has made major strides against its recovery since the beginning of May, when active listings were roughly even with 2021 levels. This is a welcome improvement for shoppers, but the market still lags what was once normal, with fewer than half as many homes for sale in June than in 2019.
- Homes spent just 1 day less on the market than this time last year, holding steady at last week’s annual pace. The time on market gap relative to last year continues to shrink, after getting smaller in June over May, which marked the first time in three months that a new record-low wasn’t set. This is due to both seasonality and cooling buyer demand amid cost pressures alleviating some of the urgency.
What the data means:
“We’ve now seen two consecutive weeks of fewer homeowners deciding to sell. Fortunately for buyers, the dip got smaller, but it will still be an important indicator to watch closely. If seller participation loses significant momentum, the trend toward market balance could be thrown off,” said realtor.com® Chief Economist Danielle Hale. “Recent new listings data suggests that some prospective sellers may be growing wary as the run-up in mortgage rates price some buyers out of the market. Especially for first-time buyers looking for relative affordability, monthly starter home costs were $2,437 in June—that’s $561 higher than rents. And June data did show that fewer buyers and sellers made it to the closing table. Still, homeowners trying to decide if now is the time to list are still in a good position in many markets, as a decade of rising home prices gives them a substantial equity cushion and homes continue to move quickly.”
To view the full report click here.