With the surge in active property listings housing prices begin to cool by 35

A townhouse for sale in New York City’s Upper East Side. Adam Jeffery | CNBC
Part of the heat comes from the housing market, although prices are still higher than they were a year ago. Several new reports show that after a spring market slowdown, the rate of increase in home prices is slowing and home sellers are starting to give in. Data from real estate brokerage Redfin shows that home sales have stalled since the onset of the COVID-19 pandemic, with the median home price falling slightly below the asking price for the first time in the four weeks ending June 23, dropping 0.3%. A year ago, a typical home sold at list price. Two years ago, it was selling for about 2% above list price. This is not to say that the real estate market is collapsing. In the last month, fewer than two-thirds of homes sold above list price; however, this is the lowest share since June 2020. While most sellers continue to list their homes at higher prices than comparable homes a year ago, some sellers admit that they have no control over these prices.
Read more US consumer news and business channels on real estate news US Bank says the housing market will be “stalled” until at least 2026, as mortgage rates and demand suggest a slow summer housing market
According to Mortgage News Daily, mortgage rates remain high, with the average interest rate for a 30-year fixed mortgage staying above 7% for the third consecutive month. The closely watched S&P Case-Shiller index shows that home prices rose 6.3% from April 2023 to April 2024. May’s prices continued this trend. Prices are now 47% higher than they were at the beginning of 2020, with the median sales price five times the median household income. CNBC has learned exclusively about another house price index to be released next week by ICE Mortgage Technology. The data shows that the annual growth rate in home prices fell from 5.3% in April to 4.6% in May, the slowest rate of growth in seven months. Supply is beginning to increase, leading to price declines. According to Realtor.com, the total number of active listings is 35% higher than at this time last year. However, in the long run, inventory is still down over 30% from typical pre-pandemic levels, even after recent increases. Marije Kruythoff, a real estate agent at Redfin in Los Angeles, said in a press release, “Some buyers think they can make deals because they hear the market is cold, and some sellers believe that every home will sell at the highest price, no matter what.” “In fact, it all depends on the house and the location.”
Don’t miss these insights from CNBC PRO. The BTIG S&P 500 Index suggests that these Nasdaq stocks are expected to decline as the second half of the year begins. Fundstrat’s Tom Lee continues to make bold bullish stock calls, locking it in on a chart history at Nvidia that could mark the high for the stock to watch if Nvidia and other tech companies’ unsettling chart patterns mean a sell-off is coming.