🏡 US Home Sales Dive Down the Rabbit Hole 🐇 – Are We Living in Wonderland? 🤔
TL;DR: US home resales have plummeted to a dismal five-month low due to a shocking lack of inventory, pushing those house price tags to skyrocketing levels. Yet, with prices near record highs, are home dreamers in for a reality check or a golden opportunity? 🚀🏡
The Housing Hustle – Where Did All the Homes Go? 🕵️♂️
June witnessed a mysterious decline in sales of those comfy, lived-in American homes – the drop was so steep, we might as well call it a cliff. 🏞️ Diving down by 3.3% to a 4.16 million annualized pace, these sales figures are dancing in sync with what the brainy economists predicted. But here’s the real jaw-dropper – these sales have nosedived by a whopping 17% compared to last year.
So, you may wonder, why this unexpected game of hide and seek with houses? 🏠💨 The key player behind this saga is the super scarce inventory, marking the lowest record for June with just 1.08 million homes up for grabs. And here’s the twist – with current mortgage rates playing on a high note, doubling up from the end of 2021, many homeowners are playing it cool, choosing not to part with their prized possessions.
Lawrence Yun, the brainy chief economist at NAR, dropped some wisdom on us: “There are simply not enough homes for sale.” But he also spills that the market is starving, hungry enough to gulp down double the current inventory. 🍔🏠
Breaking Down the Housing Market Drama 🎭
If you rewind to a year back, you’d see the housing market in a much happier place. But with surging borrowing costs leading the pack, the existing home sales have faced a shaky ride. But hey, every cloud has a silver lining, right? 🌥️ Builders, the unsung heroes, are now jumping in, patching up the inventory void, thereby giving the housing sector a bit of CPR.
If you’re thinking prices have taken a hit with this fiasco, think again! While the median selling price has dipped a tad from last year, hovering around $410,200, it’s still gleaming as the second-highest since we partied like it was 1999. Yun spills the beans that a lot of homes are getting the royal treatment, with multiple suitors (read: offers), and one in three homes even getting swept off the market at prices higher than their initial ask. 💸💰
Got time on your side? Well, the houses certainly don’t. 🕰️ With a 3.1 month supply at the current sales pace, the market’s looking pretty tight, especially when realtors see anything below five months as a sign of things heating up. To sprinkle in some numbers – 76% of homes sold were only out in the market’s limelight for less than a month, averaging about 18 days in June.
Pondering the Future: A Housing Riddle 🤷♀️
As we wrap up this rollercoaster of home sales, one has to wonder – what’s next on the horizon? With single-family homes sales easing and even condos and co-ops facing a decline, is the US housing market gearing up for a rebound or a further dip? 📉📈
Existing home sales have always been the big fish in the vast ocean of US housing. With new home sales data waiting in the wings, it’s a waiting game to see which way the wind will blow. 🌬️🏡
Question to Leave You With: With such volatile shifts in the home sales scene, would you be making a move in this market or sitting it out with some popcorn on the side? 🍿🏠 Let’s chat!