Key facts
- U.S. single-family home inventory reached its peak level since the pre-pandemic era in June.
- National active inventory averaged 823,902 units in June, exceeding 840,000 by month-end.
- The median asking price for newly listed homes fell from $440,000 to $430,000 in June.
- Nearly 39% of all active listings nationwide had undergone a price cut by late June.
- Markets in Texas and Florida, particularly Houston, are experiencing ballooning inventories and longer selling times.
- Northeast markets like Providence, R.I., and West Virginia continue to experience tight inventory and favor sellers.
The U.S. housing market is experiencing a significant rebound in inventory, shifting leverage towards buyers, though this trend is not uniform across all regions. In June, national active inventory reached its highest point since the pre-pandemic era, averaging 823,902 units and surpassing 840,000 by the end of the month. This increase in supply, with new listings outpacing pending contracts, provides buyers with more choices than they have had in recent years.
The national median list price remained stable at approximately $450,000 in June. However, the median asking price for newly listed homes decreased from $440,000 to $430,000 throughout the month, suggesting sellers are adjusting their price expectations. Holly Mabery, Chief Brokerage Officer at eXp Realty, noted that some sellers still operate under the assumption of 2022 market conditions, while buyers are increasingly focused on the total cost of homeownership, including repairs, utilities, and insurance.
Nationwide, nearly 39% of active listings had seen a price reduction by late June, up from 38% at the beginning of the month and exceeding the typical 30-35% benchmark. Approximately 9% of properties were relisted after being removed from the market, indicating weakening demand.
Sun Belt and Mountain West states, including Texas and Florida, are witnessing substantial inventory growth and longer selling times. Houston, in particular, recorded the highest supply strain, with 35,151 active listings and a 4.0 months' supply, making it the only major metro to enter buyer's market territory. Austin, San Antonio, Denver, and Miami also show similar trends of increased inventory and price reductions.
In contrast, Northeast markets such as Providence, R.I., and states like West Virginia, along with Milwaukee, continue to experience tight inventory and remain seller-dominated. These regions exhibit significantly lower months of supply and faster selling times compared to the national average.
Buyers are adopting a more methodical approach, considering factors beyond price, including condition, presentation, and overall affordability. Emily Duke, managing broker at LUX Real Estate Company, highlighted that well-prepared homes with compelling value propositions continue to perform well, while those lacking them struggle. Josh McGrath, broker-owner of Better Homes and Garden Real Estate Central, noted that buyers are being more patient and selective, emphasizing the need for properties to be correctly conditioned and priced.
The market's performance is highly localized, with agents needing to understand specific market dynamics to effectively guide sellers and buyers.