Navigating the Bumpy Summertime Real Estate Market
According to the latest RE/MAX National Housing Report, home sales slowed in July, yet inventory inched up.
The summer is flying by, and along with it comes a noteworthy shift in the real estate landscape. The RE/MAX National Housing Report for July 2023 reveals that a decline in home sales – the first since April – is a possible sign that the summer buying season is beginning to taper. Though the numbers hinted at a subtle cooling, the experts say demand for housing is still strong.
“The market is playing out like we expected it to – it’s bumpy,” says Nick Bailey, President and CEO of RE/MAX, LLC.
Bailey acknowledged how higher interest rates and ongoing inventory issues are slowing the market, even though demand remains high.
“As rates stabilize, we hope to see consumers’ confidence strengthen, helping boost market activity,” Bailey adds.
In July 2023, there was 14.7% drop in home sales from June 2023 and a 16.1% decrease from July 2022.
A 9.0% drop in new listings in July 2023 acted as a catalyst for the downturn, setting off a ripple effect across the market. And across the report’s 50 metro areas surveyed, this translated into a substantial 26.7% decrease in new listings. Despite these adjustments, the inventory of homes available did show a slight uptick of 3.1% from June 2023.
Amidst the fluctuating numbers, the median sales price in July 2023 remained steady at $425,000. Experiencing a marginal drop of less than 1% from June, the median sales price simultaneously increased 1.2% compared to July 2022. With that, now may be a time of opportunity for home sellers. The average close-to-list price ratio held steady at 100%, indicating that sellers were able to secure their desired asking prices from buyers.
Here’s some need-to-know data from the July 2023 RE/MAX National Housing Report:
Lack of New Listings
Of the 50 metro areas surveyed in July 2023, the number of newly listed homes is down 9.0% compared to June 2023, and down 26.7% compared to July 2022. The markets with the biggest decrease in year-over-year new listings percentage were Phoenix, AZ at -59.3%, Las Vegas, NV at -45.8% and Providence, RI at -37.4%. Only one market had an increase in year-over-year new listings percentage, Kansas City, MO at +1.8%.
Median Sales Price Remains Relatively Unchanged
In July 2023, the median of all 50 metro area sales prices was $425,000, down 0.7% compared to June 2023, and up 1.2% from July 2022. The markets with the biggest year-over-year decrease in median sales price were Phoenix, AZ at -4.4%, San Antonio, TX at -3.7%, and Las Vegas, NV at -3.4%. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ at +14.1%, Bozeman, MT at +9.2%, and Milwaukee, WI at +9.0%.
Modest Increase in Homes for Sale and Months’ Supply
The number of homes for sale in July 2023 was up 3.1% from June 2023 and down 20.8% from July 2022. Based on the rate of home sales in July 2023, the months’ supply of inventory was 1.5, up from 1.3 in June 2023, and decreased compared to 1.6 in July 2022. In July 2023, the markets with the lowest months’ supply of inventory were a four-way tie between Charlotte, NC, Manchester, NH, Seattle, WA, and Trenton, NJ at 0.7. The markets with the highest months’ supply of inventory were San Antonio, TX at 3.5, Bozeman, MT at 3.4, and New Orleans, LA at 3.1.
Article originally appeared on RE/MAX.com.