Median Sales Price
Key Insight: The median sales price for resale homes has surpassed new builds for the first time since April 2021.
Reason: This shift is partly due to the average square footage of homes sold for existing homes surpassing that of new builds. Larger existing homes being sold can drive up the median price.
Implications: This trend could indicate a growing preference for larger, perhaps more established properties over new constructions, possibly influenced by factors like location, lot size, and mature landscaping.
Homes Sold
Single-Family and Existing Homes:
First Decline Since January 2024: After a steady period of sales growth, these sectors saw a decline, indicating potential cooling in demand or market saturation.
Possible Causes: Economic factors such as rising interest rates, inflation, or seasonal market fluctuations might contribute to this decline.
New Construction:
Recovery: New construction sales bounced back from an 8.6% decline in May, suggesting resilience in the new homes market.
Factors: The recovery could be due to increased buyer incentives, improved supply chain conditions, or a shift in buyer preference towards modern amenities and energy-efficient homes.
Long-Term Trends: Despite monthly fluctuations, the overall long-term sales trend remains stable, highlighting a generally balanced market.
Pending Sales
Increase in Contracts:
200 More Signings: Compared to June 2023, there are 200 additional pending contracts, signaling robust buyer interest.
Double-Digit Improvement: Every sector has experienced significant growth, suggesting broad market confidence and strong demand across various types of properties.
Implications: An increase in pending sales typically forecasts higher future sales volume, indicating continued market strength.
Inventory
Recovery from Shortages:
Significant Strides: Inventory levels are rebounding from the severe shortages seen between 2020 and 2022, driven by increased construction and more sellers entering the market.
MSI Levels: The Months’ Supply of Inventory has returned to October 2022 levels, indicating a healthier balance between supply and demand.
Implications: Improved inventory levels can lead to a more balanced market, reducing upward pressure on prices and providing buyers with more options.
Days on Market
Market Speed:
Consistent Speed-Up: Since February, the market has generally accelerated, with homes selling faster except for a brief slowdown in May.
Seasonal Shifts: This acceleration is consistent with typical seasonal patterns, where spring and summer months see quicker sales due to higher buyer activity.
Comparison: Current market speeds are on par with those observed in Summer 2023, Fall 2022, and Winter 2021, suggesting that despite recent fluctuations, the market operates within a familiar rhythm.
Implications: Faster sales can indicate strong demand and a competitive market, but also mean buyers need to act quickly and decisively.
Overall, the housing market shows a mix of resilience and dynamism, with notable trends in median sales prices, sales volume, pending sales, inventory recovery, and market speed. These factors combined reflect a market that is adapting to economic conditions, buyer preferences, and seasonal variations.
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