RE/MAX has released new data through its National Housing Report covering the month of June which found that halfway through the peak summer buying season inventory is up, yet still below levels seen in 2021, but more signs are starting to appear signaling a more balanced market may soon be a reality.
To start, June posted the most home sales of any month so far in 2022 beating May by 4.7%, but was still 17.6% below the number of home sales over the same period of 2021.
Inventory grew at a rate of 34.1% over May 2022 marking the third consecutive month of inventory gains and a year-over-year growth of 27.5%
The data also found that median sales prices slowed their growth in June, barely increasing by 0.6% to an average of $428,000. Year-over-year, the median sales price is up 11%.
Some of these findings can be attributed to the 7.7% increase in new listings month-over-month, which was an increase of 1.6% over June 2021. Months supply of inventory jumped from 0.9 in May to 1.4 in June. A year-over-year, months supply of inventory was 1.0.
"The market is moving toward greater balance, especially with inventory gains and the slowing of price appreciation. The past few years have been one of the most competitive times ever for buyers—and we're finally seeing conditions ease up," said Nick Bailey, President and CEO. "It's due partly to the rise in interest rates—although buyers are also finding solutions in ARMs, FHA products and other financing—but even more significant is the increase in listings after several years of instant sales and low inventory. Markets like Nashville and Phoenix saw an increase in new listings of over 20% last month, bringing new options for buyers who may have sidelined themselves in the frenzy of last year."
RE/MAX Professionals Sales Associate/Owner Nate Martinez, who is based in Phoenix, Arizona, added, "The Phoenix metro area is in the process of a market shift from a red-hot market to more of a balanced market. With inventory increasing, we're seeing more opportunities for buyers, a leveling of home prices and a reduction in homes selling with multiple offers."
Data for the report was aggregated from MLS listings and internal data. Click here to view the report, including breakdowns for the top 53 metropolitan areas.