Existing home sales fell again in June, as home prices continued to surge to record highs. But opportunities for buyers are increasing. Median home sales prices have never been higher, and that might be making home buyers skittish—but this may not persist for much longer, the National Association of REALTORS®’ latest monthly housing report suggests. Existing home sales, reflecting completed transactions for single-family homes, townhomes, condos and co-ops, dropped 5.4% year over year in June, even as home prices remained resilient. The median existing-home sales price climbed 4.1% in June to $426,900, the second consecutive month that saw a new record, NAR reported.

Still, “even as the median home price reached a new record high, further large accelerations are unlikely,” says NAR Chief Economist Lawrence Yun. “Supply and demand dynamics are nearing a balanced market condition. The month’s supply of inventory reached its highest level in more than four years.” While home sellers can cash in on their growing equity, potential home buyers are seeing hints that the housing market is thawing. More listings are coming on the market, which means more choices for home buyers and possibly less competition. “We’re seeing a slow shift from a seller’s market to a buyer’s market,” Yun says. “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.” Indeed, inventory of unsold existing homes grew 3.1% in June compared to the previous month and are up about 23% from a year ago. As housing inventory increases, properties are staying on the market longer—typically 22 days in June, up from 18 days a year prior, NAR reports.

Source: NAR