June Home Sales Decrease: Could This Bring Some Much-Needed Relief to Buyers?
Months of constricted inventory combined with a steady gain in year-over-year price increases created a recipe for seller’s delight in recent months. But for homebuyers, tight housing markets can mean increased competition (and some headaches!). Trends continue to show a move toward a more balanced market, and the increase in average days on market year-over-year may be welcome news to homebuyers.
According to the most recent RE/MAX National Housing Report, June saw closings decline and an all-time high median sales price of $276,000 for the 10-year history of the report. With sales slowing, inventory increased 1.3%, but supply still remains tight.
Despite the decline in home sales, there are indications that the market is rebalancing. “Several encouraging longer-term trends – ongoing demand, improving inventory levels, low interest rates – are helping the market make incremental progress on multiple fronts,” said RE/MAX CEO Adam Contos.
These trends may provide an opportunity for homebuyers to have greater flexibility to negotiate terms and concessions. Homes are sitting on the market a bit longer, which could make finding that perfect home more of a reality.
Here are some highlights of the latest data found in the RE/MAX National Housing Report:
- Home sales slowed at an unusual decline for this time of year.
June, typically the strongest month for home sales, saw closings decline 4.7% from the previous month and 7.8% from June 2018. This is only the second June in 10 years to have fewer sales than May.
- Inventory is up. Transactions are down.
With sales slowing, June inventory increased 1.3% over June 2018, marking the first year-over-year rise in June inventory in the report’s 10-year history. This is the ninth consecutive month that inventory has grown, showing the shift as the market rebalances.
- Sales prices are accelerating after months of moderation.
Housing activity in the report’s 54 markets nationwide also saw the Median Sales price grow by 6.7% year-over-year. June’s price increase accelerated compared to the prior three months, each of which had a year-over-price increase of less than 3.5%.
Prospective homebuyers, are you ready to make your move? Contact a RE/MAX agent today.