WASHINGTON–Higher mortgage rates are having an effect, as the supply of homes for sale across the U.S. grew at a record rate during July. But that growth hasn’t translated into much lower prices due to demand.
The number of active listings nationwide increased 31% from a year earlier, a record-high increase for a third straight month, according to a report released by Realtor.com.
As CUToday.info has been reporting and as credit unions know well, mortgages rates have slowly but steadily been increasing as the Federal Reserve has been raising rates as part of its broad effort to fight inflation.
Data show that with more homes on the market, sellers are responding by trimming their prices to compete.
“With inventories increasing, buyers will have more negotiating power,” Danielle Hale, chief economist for Realtor.com, told Bloomberg. “The two years of a market heavily tipped in favor of sellers appears to be in the rearview mirror.”
Prices Remain High
However, as Bloomberg noted, inventory has yet to return to pre-pandemic levels.
“And even as options increase, competition for homes remains strong, keeping prices elevated. The nationwide median list price in July was $449,000, up 17% from a year earlier and close to the all-time high reached in June,” the report added. “The affordability crunch and remote-work policies have been pushing some people to relocate to less-expensive areas.”
The Realtors.com data indicate new listings last month contracted for the first time since March, down 2.8% from a year earlier, suggesting some owners are reconsidering their plans to list with the market shift.
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