Housing Market Displays Resiliency Amid Low Inventory

June 2023 sees a small seasonal gain in home sales while sales trends continue to trail 2022.

The U.S. housing market had a month-over-month increase in home sales in June, according to the June 2023 RE/MAX National Housing Report. Sales for the month were 5.4% higher compared to May 2023, with a 7.2% month-over-month increase in inventory. Year-over-year, June 2023 home sales were down 18.7% from June 2022.

Noting the presence of enduring demand, Nick Bailey, RE/MAX President and CEO, believes the market will continue largely as-is for the near term.

“June’s month-over-month gain in sales is largely seasonal, but it shows the market’s resiliency in the face of low inventory and higher interest rates,” Bailey says. “While we probably won’t see a significant jump in sales activity in the short term, demand is strong and houses are selling when they’re priced right. The expertise of an experienced real estate agent continues to be an important part of the equation for buyers and sellers navigating this rebalancing market.”

Christine Dupont-Patz, Broker of RE/MAX Cherry Creek in Denver, Colorado, mentions that while there isn’t an abundance of inventory in her local market, buyers are choosing to be pickier on what properties they make moves on.

“While inventory is still incredibly tight, buyers are really waiting to move on updated, turn-key homes. Sellers need to do their maintenance and updates prior to listing, as many buyers in the media price-points do not have the extra funds to update the listings prior to moving in,” Dupont-Patz says.

Here’s some need-to-know data from the 52 U.S. metro areas surveyed for the June 2023 RE/MAX National Housing Report:

New Listings Show Mixed Trends

Of the metro areas surveyed in June 2023, the number of newly listed homes was up 0.5% compared to May 2023, and down 25.0% compared to June 2022. The markets with the biggest decrease in year-over-year new listings percentage were Phoenix, AZ at -54.4%, Las Vegas, NV at -43.3% and Seattle, WA at -35.9%. No markets had an increase in year-over-year new listings percentage.

Modest Increase in Homes for Sale, while Months’ Supply Varies Across Markets

The number of homes for sale in June 2023 was up 7.2% from May 2023 and down 10.7% from June 2022. Based on the rate of home sales in June 2023, the months’ supply of inventory was 1.4, up from 1.3 in May 2023, and decreased compared to 1.6 in June 2022. In June 2023, the markets with the lowest months’ supply of inventory were a three-way tie between Charlotte, NC, Manchester, NH, and Trenton, NJ at 0.6. The markets with the highest months’ supply of inventory were Bozeman, MT at 3.0, San Antonio, TX at 2.9, and Houston, TX at 2.8.

Fluctuations in Median Sales Prices

In June 2023, the median of all 52 metro area sales prices was $425,000, up 2.4% compared to May 2023, and down 0.3% from June 2022. The markets with the biggest year-over-year decrease in median sales price were Coeur d’Alene, ID at -8.0%, Las Vegas, NV at -7.9%, and Phoenix, AZ at -6.5%. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ at +11.5%, Omaha, NE at +10.2%, and Anchorage, AK at +7.8%.

Ready to make a move? Contact a local RE/MAX agent today.

Article originally appeared on RE/MAX.