Though the feverish real estate market continues to favor sellers in much of the country, economists say the market cooled a bit in July.
Median Home Prices Steady from June to July
Median home prices nationwide held steady at $385,000 from June to July 2021, according to realtor.com. “Steady” translates into median home prices being up 10.3% y/y in July but lower than June’s median home prices that were up +12.7%. “Steady” also means that July was the third month in a row in which year-over-year median home price gains have slowed.
Lawrence Yun, chief economist with the National Association of REALTORS® (NAR), said that the housing market “…is just moving from super-hot to normal-hot. It’s still a seller’s market.”
Slower Price Growth in July Related to More For-Sale Entry-Level Homes
Danielle Hale, realtor.com’s chief economist, said that July’s slower median price growth was related to there being more entry-level homes at lower prices on the market than there were in July 2020.
But even those more available for-sale smaller, entry-level 2,000 square foot homes were more expensive in July 2021 than they were in July 2020. Year-over-year home price appreciation in this smaller, entry-level sector was up +18.7% y/y from July 2020.
Hale said, “For buyers looking for smaller, entry-level type homes, that’s good news. I still wouldn’t say those homes are plentiful, but there’s more of them for sale now than there was a year ago.”
Inventory Up in July
Inventory was up +6.5% y/y in July, another “good” sign, according to Hale. “It’s still going to be a competitive market. But we’re going to start to see more balance.”
Thanks to realtor.com, The New York Times and National Association of REALTORS®.