Report Shows Rising Inventory but Stagnant Home Prices

Real estateImage by Augusto Ordóñez

SAN FRANCISCO, CA — HouseCanary, Inc. has released its May Market Pulse Report, revealing a 3.6% increase in net new listings compared to May 2023. Despite this uptick, the housing market remains sluggish due to high interest rates and elevated home prices.

Throughout May, new homes flooded markets across the country, pushing total inventory up by 22.3% from the same period last year. While inventory hasn’t yet reached historical highs, it is rapidly approaching levels seen in 2022. However, the rise in inventory has not alleviated high home prices.

Jeremy Sicklick, Co-Founder and CEO of HouseCanary, commented on the findings: “Although inventory has continued to increase over the past four weeks, we’ve seen little relief in terms of home prices. With home prices reaching record highs throughout April and mortgage rates still hovering around 7%, homebuyers continue to feel the impact of high interest rates. First-time buyers have been particularly affected by rising home prices as they struggle to enter a highly competitive housing market.”

Sicklick also noted the “lock-in” effect, where homeowners are reluctant to sell and lose their lower mortgage rates, contributing to a decrease in net new listings. “As we look ahead to June, the start of summer will likely remain somewhat quiet, as hopeful homebuyers and those looking to sell have little incentive to enter the housing market,” he added.

Key takeaways from the report include:

  • Over the last 52 weeks, 2,617,925 net new listings were placed on the market, and 2,591,530 properties went under contract, representing decreases of 3.6% and 6.3%, respectively.
  • For May 2024, 313,719 net new listings were placed on the market, and 313,237 properties went under contract, showing increases of 2.8% and 3.3%, respectively, compared to May 2023.
  • The increase in net new listings was driven by a 5.5% rise in new listing volume and a 21.7% increase in removals compared to May 2023.
  • Median days on the market stand at 34, up from 33 days a year ago.
  • The median price of all single-family listings in the U.S. was $458,026, with the median closed price at $438,497. Year-over-year, these figures represent increases of 3.0% and 6.9%, respectively.
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HouseCanary’s report indicates that while inventory is on the rise, the housing market remains challenging for both buyers and sellers. High mortgage rates and soaring home prices continue to dampen activity, suggesting a quiet summer ahead for the real estate sector.

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