Published by REALTOR.com | July 20, 2023
Existing-home sales slowed again last month, but aspiring home buyers continue to face competition for limited inventory.
Existing-home sales continued to retreat in June as the housing market faces a crushing inventory shortage. But high buyer demand is still evident as home shoppers bid up prices.
The median sale price for an existing home in June was $410,200, the second-highest recorded in the last 24 years, according to the National Association of REALTORS®’ latest housing report. The all-time high of $413,800 was set a year ago, according to NAR data. “Home sales fell, but home prices have held firm in most parts of the country,” NAR Chief Economist Lawrence Yun says of the June figure. “Limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price.”
Homes are selling at a brisk pace: Seventy-six percent of homes sold in June were on the market for less than a month, according to NAR’s data. The typical time on market was just 18 days.
Despite Challenges, Buyers Are Optimistic
Even up against high home prices and mortgage rates, not to mention limited housing choices, Americans overall still appear eager to buy a home. Fifty-four percent of consumers say now is a good time to purchase, according to TD Bank’s latest Mortgage Service Index. But home buyers are stressed, citing inventory and mortgage rates among their biggest stressors, the survey finds.
Home buyers have reason to be concerned about the lack of homes on the market: Total housing inventory at the end of June remained historically low at 1.08 million units. Inventory is down 13.6% from a year ago, NAR’s data shows.
