Home Prices Rise Again !
In July, there was a glimmer of hope for potential homebuyers as list prices dropped to $440,000, a decrease from $443,900 a year ago. However, over the past two weeks, prices have started to rise again, gradually increasing by 0.7% for the week ending on August 5, in comparison to the previous year.
Despite this upward trend, according to Realtor.com® economic research analyst Hannah Jones, it’s unlikely that we’ll witness a new peak home price in 2023, surpassing the record of $449,000 set in June 2022.
While prices are moving upwards once more, they are unlikely to reach the heights of the summer of 2022. Jones notes that the challenge of affordability is likely to persist for homebuyers.
The count of new listings is still declining. This week, new listings, which indicate the number of sellers putting their homes up for sale, decreased by 14% compared to the previous year. Many sellers are holding off on listing their homes until interest rates decrease, allowing them to secure a better price.
The supply of new homes on the market has been decreasing for 57 consecutive weeks. Yet this decline isn’t as drastic as before. Jones observes that the gap is starting to narrow. However, the active inventory, which includes both new listings and older listings still on the market, lags behind last year’s levels by 9%.
For the seventh week in a row, the number of homes available for sale has dropped compared to the same time last year, and this gap is expanding. This suggests that there are still potential buyers who are prepared to navigate high interest rates, increasing home prices, and other obstacles.
Jones explains that the persisting hesitation among existing homeowners to put their properties up for sale, as reflected in new listings, is hindering overall inventory growth. She adds that they anticipate an overall 5% decrease in 2023 compared to 2022. Search SW Florida Real Estate
With inventory shrinking, prices are sure to maintain or go higher.