Housing market ‘purgatory’ for existing home sales as activity falls to lowest level in 9 months

The housing market is more traditional congestion in the spring, but the main purchase season this year has proven faded. The month decreased the month has significantly decreased the capacity to withstand costs: the mortgage rates are approximately 7 % throughout April and May, when most closed operations in June had held the contract.

“Sacrifice of current homes was in the purification since the mortgage rates increased in 2022,” Lance Lambert, Resiclub editor, told Fortune Intelligence. “Some of this is because the ability to afford the tense costs in many markets makes it difficult for sellers to find a buyer at their order-and this is also the reason for the active inventory height. Some of them are because many potential sellers, who want to sell and buy something else, either cannot bear this next amount or do not want to separate from the mortgage rate and the payment.

High prices

At the level of the country, home prices have risen to their highest levels ever, as they support pressure on the market cost. The average price for current homes reached $ 435,300 in June, an increase of 2 % of the same month in the previous year, and the 24th month is distinguished by the annual gains. The chief economist in Nar Lawrence Yun has an optimistic tone about this amazing climb: “The average rate of medium home houses is highlighted how American home owners’ wealth continues to grow-benefit from home ownership. The owner’s wealth has expanded by $ 140,900 over the past five years.”

Although sales are weak, the stock is slowly rebuilt: 1.53 million homes were listed for sale at the end of June, an increase of approximately 16 % over last year – the highest level in the years – although it is still 0.6 % less than seasonal factors. This places the stock of the market that is not sold in a 4.7 -month supply, match prenatal standards and a height of 4.0 months in the previous year.

Regional dynamics varied. Sales decreased in the northeast, Middle West and South West, but they rose up in the West, with annual changes that reflect these divisions. Single -family homes fell 3 %, while sales of housing and cooperative units were stable compared to May, but 5.3 % fell against June 2024.

A positive one for buyers: more supply and a little longer in the market. Realtor.com stated that the active stock of June rose for the twentieth month in a row, increasing by almost 29 % on an annual basis to 1.08 million homes, and the medium house spends 53 days in the market, five days ago one year ago. However, these gains are compensated by permanent division when compared to the prenatal market, and the price cuts have become more common, with approximately 21 % of the lists that suffer from declining adjustments-above the June share since 2016.

“Several years of supply leads the price of the standard house,” Yoon said, noting that the construction is still behind population growth and restores buyers for the first time. “If the average mortgage rate decreases to 6 %, our scenario analysis indicates that 160,000 additional tenants will become homeowners for the first time and increase the activity of the current homeowners,” Yoon added.

Yoon said that if the mortgage rates decrease in the second half of this year, he expects to increase homes all over the country due to strong income growth, healthy stock, and a record number of jobs. Currently, it is a familiar story of peak prices and the ability to bear costs as the main obstacles to potential home buyers in the United States

For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.