July inventories rose an uncharacteristically 4% from June, marking the first two consecutive months of month-over-month inventory gains since April and May 2019, according to RE/MAX. Meanwhile, July’s 1.3 months of inventory set a new low for the month. Home sales in July were the third highest total in the report’s 13-year history, although they were down 8.4% from June, a seasonal norm. The median home price of $331,000 in July was down 1.2% from June’s record high of $335,000.
“The month-over-month gain in inventory, continuing a short trend that began in June, was great news, although the shortage of listings remains a major challenge,” said Nick Bailey, president of RE/MAX, LLC.. “Some buyers have pulled back in light of high prices, seller expectations, multiple offers and intense competition, but new listings are still selling quickly. Clearly, the demand is still there. The market should continue to be hot, especially if interest rates stay low, prices stabilize a bit and more sellers rush to take advantage.
With year-over-year comparisons skewed by the pandemic, the June-July averages for 2015-2019 illustrate what is typical in midsummer:
– The month-over-month decline of 1.2% in the July median selling price was lower than the 2015-2019 average June-July decline of 2.2%. Year over year, the median selling price increased by 16.2%.
– The 4% month-over-month increase in inventories was atypical for this time of year and a far cry from the 1.6% average decline from June to July of 2015-2019. Although this was the second consecutive month of gain (June stocks were up 1.9% from May), stocks are still down 29.7% year over year.
– The third-largest total in the report’s 13-year history, July 2021 home sales fell 8.4%, nearly identical to the 8.2% average decline from 2015-2019. Year over year, sales were down 3.1%. The only months with more sales than July 2021 were June 2021 and July 2020.
Bailey continued, “Over the past 13 months, we have seen the first three months of business activity in 13 years of writing this report. That says a lot about today’s buyers. With all the factors favoring sellers right now, buyers are driving this very active market.
July’s average days on market of 23 was one day less than June and 21 days more than the same time last year. July’s 1.3 month inventory supply was the same as June, but significantly lower than July 2020’s 2.0 month inventory supply.
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