July 2022 marked the first decline in Median Sales Price since January, following a double-digit drop in home sales from June to July, according to the latest RE/MAX National Housing Report. Further signaling that the strong seller’s market in the U.S. may be rebalancing, July also saw a double-digit increase in homes for sale. What does all this mean?
It’s simple, according to RE/MAX President and CEO Nick Bailey: it means more choices for homebuyers.
“It’s an exciting time to be a homebuyer. For the first time in years, we’re seeing sustained inventory gains and the slowing of home price appreciation,” Bailey says. “The market is rebalancing after favoring sellers for so long. There’s still ground to make up with new construction, but the change in recent months has brought some much-needed relief to buyers.”
He continues, “And sellers still have it good, too. A calming market doesn’t mean a stoppage – and there are plenty of benefits to being on that side of the equation.”
To that point, sellers are still enjoying relatively quick sales with the average Days on Market in July at 24. Furthermore, the average Close-to-List Price Ratio in July was 101%, meaning that homes, in general, sold for 1% more than the asking price.
For buyers, it’s worth noting that year-over-year, home sales were down 26.3% from July 2021, which may create greater options. Attributing the decline in home sales to the recent rise in interest rates, the National Association of REALTORS® July Existing-Home Sales report noted sales were down 5.9% from June 2022 and 20.2% from July 2021. NAR Chief Economist Lawrence Yun said in the report, “The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June. Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers.”
Echoing that sentiment, Ward Morrison, President and CEO of Motto Franchising, LLC recently told RE/MAX News that “increasing interest rates can be a positive as they can create more buying opportunities for consumers.”
So, if you’re looking to buy or sell, remember there’s no “perfect time” – there’s just the right time for you. Here is the need-to-know data from the July 2022 RE/MAX National Housing Report:
The Number of Homes for Sale Continues to Rise
Following years of continual decline, inventory jumped for the fourth consecutive month. There were 13.3% more homes for sale than in June and 30.4% more than a year ago. Months Supply of Inventory has doubled since May and is now at 1.8.
Home Prices May be Stabilizing
In July 2022, the median of all 53 metro area Sales Prices was $415,000, down 2.9% compared to June 2022, and up 8.1% from July 2021. One metro area saw a year-over-year decrease in Median Sales Price, Dallas, TX at -1.9%. Twenty-seven metro areas increased year-over-year by double-digit percentages, led by Tampa, FL at +23.7%, Fayetteville, AR at +21.6%, and Raleigh, NC at +19.1%.
Home Sales are Calming – Not Stopping
Of the 53 metro areas surveyed in July 2022, the overall number of home sales is down 16.6% compared to June 2022, and down 26.3% compared to July 2021. The markets with the biggest decrease in year-over-year sales percentage were Houston, TX at -45.1%, San Diego, CA at -42.1%, and Miami, FL at -40.9%. No metro area had a year-over-year sales percentage increase.
Ready to make a move? Contact a local RE/MAX agent today.
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Written by SAMANTHA ROTBART
