US existing home sales rose in July, NAR data shows.
Sales increased 2%, offering buyers hope that the market may finally be thawing.
“Homebuyers are in the best position in more than five years,” NAR economist, Lawrence Yun, said.
After months of steadily tougher conditions, new data shows that the housing market loosened up a bit in July
According to data from the National Association of Realtors, existing home sales rose 2% on a month-over-month basis, reaching a seasonally adjusted annual rate of 4.01 million
One thing working for buyers in the month was a big jump in supply, with 1.55 million homes for sale. That’s an increase of almost 16% and the highest amount since 2020, the NAR said.
The NAR’s July existing home sales data indicates that things may finally be shifting after months of brutal market conditions. This year, the housing market has been characterized by a continued deep freeze, as buyers balk at high prices and sellers often choose to delist their homes rather than accept an offer below asking price.
“The ever-so-slight improvement in housing affordability is inching up home sales,” Lawrence Yun, the trade association’s chief economist, said. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”
The latest data shows a pick-up in sales after June’s figures showed pending home sales in the US had fallen 0.8% between May and June, with year-over-year pending sales dropping 2.8%.
Other data on the dwindling number of first-time home buyers has also fueled concern about the state of the real estate market. Yet, Rosenberg Research predicts that the drop in housing activity will ultimately cause home prices to decline, driving broader inflation figures well below the Fed’s 2% target.
For now, record-high prices are running up against surging inventory, slowing price growth and opening a window for buyers to get into the market.
“Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price,” Yun added.
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