Real estate market news represents a mixed bag of progress

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Published Date 8/8/2022

There are “firsts.” And then there are all the firsts that have happened since the pandemic began. That’s a whole ‘nuther statistic where housing is concerned. According to Realtor’s Judy Dutton, America’s real estate market’s recent housing data reveals yet a new twist that economists haven’t seen in two whole years.

She cites How’s the Housing Market This Week?, a weekly column where Realtor delivers the most up-to-date statistics on four crucial indicators: home prices, number of new listings, total days on the market, and mortgage rates. She reveals what has changed this week—crucial information for both home buyers and sellers staying on top of the highly dynamic world of real estate today.

According to stats for last week of July, the most noteworthy shift involves how long homes are taking to sell — properties lingering on the market even a day longer than they did the same week last year. “While one extra day might not seem like much, it’s a pivotal turning point after two straight years of buyers watching this window of opportunity grow smaller and smaller, week after week,” says Dutton. Realtor’s Chief Economist Danielle Hale explains, ““This week’s data marks the first year-over-year increase in time on market in over two years.”

Because this new reality offers a tad more breathing room for homebuyers, it means making an offer without worrying the house will be taken by the time they’ve finished their tour. Baby steps. But the implications of this development extend beyond that to a trend. “The increase in time on market is just another one of the increasingly common flags that the housing trends that prevailed over the last two years are squarely in the rearview mirror,” explains Hale.

No doubt about it; home prices continue to increase, still scaring buyers. The latest June data places the median home price ($450,000) in its 33rd straight week of double-digit growth, rising by 15.6% over last year. But this is actually an improvement over weeks prior, since this represents a lower number than the previous two weeks (ending July 16 and 23), when median home prices rose by 16.6%. “Even though asking prices continue to climb, this week’s data shows a deceleration, or slowing rate of price growth, compared to last week,” explains Hale. Dutton agrees that the home price growth spurt might be finally reaching some sort of plateau.

Okay. So people still aren’t scrambling to list their home. The number of new listings on the market dropped by 8% year over year for the week ending July 30—a fourth straight week of decline. “Fewer homeowners are eager to list homes for sale in this rebalancing market,” explains Hale, who admits that it appears that more and more sellers may be spooked that they’ve missed the peak of the market. While overall housing inventory (including new and old listings still on the market) is up 30% from over a year ago, it does give today’s shoppers an extra home to consider for every three that were on the market at this time last year, according to Hale. If sellers continue to sit on the sidelines, the market is becoming ripe for stagnation, with inventories becoming ‘stale’ listings, she says. What does this mean for homebuyers? Go take a second look or take a fresh look at home they may have passed over. Price cuts are indeed happening.

Dutton puts it this way: “Clearly, housing affordability is at a breaking point—but how this cookie crumbles next is anyone’s guess.”

Realtor, TBWS

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