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:

  1. 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.

  1. 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.

  1. 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.

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