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Housing

Existing Housing Inventory Hits Highest Level Since Pandemic

Strategic Insights

— 1 min read

The nation's existing housing inventory has reached its highest level since May 2020, with 1.55 million homes for sale at the end of July, a 15.7% increase from the same period last year. This marks a 4.6-month supply of homes, up from 3.9 months in June, according to the National Association of Realtors. The increased inventory is easing the cost of buying existing homes, with prices down in about half of the nation. Lawrence Yun, chief economist at the National Association of Realtors, attributes the slight improvement in housing affordability to wage growth outpacing home price growth, giving buyers more choices and negotiating power.

Key Takeaways:

  • The nation's existing housing inventory reached 1.55 million homes for sale at the end of July, a 15.7% increase from the same period last year.
  • The increased inventory represents a 4.6-month supply of homes, up from 3.9 months in June.
  • The median price of all types of homes was $422,400 in July, a 0.2% increase from the same period last year.
  • Single-family homes posted a median price of $428,500 in July, a 0.3% increase from the same period last year.
  • Price reductions were seen in about half of the nation, with the 30-year fixed mortgage rate dropping slightly from 7% in May to 6.67% at the end of June.
  • The sales of existing homes rose by 2% last month, with the Northeast, South, and West posting month-over-month sales increases, while the Midwest saw a reduction in sales.
  • Condominium prices have been falling over the past year in the South, leading to an increase in sales in that region.

Statistics:

  • 1.55 million (15.7% increase from last year) - number of existing homes for sale at the end of July
  • 4.6 months - inventory supply of homes at the end of July
  • 0.2% - increase in median price of all types of homes from last year
  • 0.3% - increase in median price of single-family homes from last year
  • 6.67% - 30-year fixed mortgage rate at the end of June
  • 2% - rise in sales of existing homes last month

Sources:

  • CNBC, reported August 21
  • UPI, reported August 21
  • National Association of Realtors
  • Mortgage News

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