07/03/2024
Current update on the real estate market nationwide.
During the four weeks ending June 23, the typical U.S. home sold for 0.3% less than its asking price. This is the first time homes have sold below list price at this time of year since the pandemic began in 2020. Last year, homes sold for their list price, and two years ago, they sold for about 2% above list price.
Only 32.3% of homes sold over asking price, the lowest since late spring 2020, down from 36% a year ago. Nearly 7% of home sellers dropped their asking prices, the highest since November 2022, up from 4.7% a year ago.
The growing supply of homes, which increased by 8.2% year over year, is outpacing demand, leading to more homes selling below asking price. Pending home sales dropped by 4.3%, the largest decline in four months, with over 60% of homes listed for at least a month without a contract.
High housing costs are deterring buyers, with the median home-sale price reaching a record $397,250, a 4.9% increase from last year. Despite slightly lower mortgage rates from May's six-month high, the typical monthly payment remains near $2,785, just below the record high.
Record-breaking heat is also discouraging buyers. Lower mortgage rates might have mitigated the impact of the heat on buyer activity.
With more homes selling below asking price and many sellers dropping their prices, sale-price growth might slow down. If inflation cools further, mortgage rates could decrease as well.
