Summer housing market starts slow, inventory improves

Expectations are for a slow housing market this summer based on June's lagging performance, according to HouseCanary's latest Market Pulse Report. 

Net new listings and contract volumes are trending at multi-year seasonal lows so far, the brokerage reported. However, the gap between those data points appears to have closed, indicating a much-needed rise in inventory. 

New listings increased by 2.6% from June 2023, but the activity is still not enough to see a return to normal levels, the report said. Total inventory is up 25.1% from June of last year but also remains historically low. 

In addition to pre-existing inventory pressures, the brokerage found the median price for all single-family listings in June was $460,214, an increase of 3% year-over-year. Despite demand from prospective homebuyers, affordability struggles such as record-high asking prices are keeping contract activity down. 

The uptick in net new listings was driven by a 6.4% increase in new listing volume last month compared to the same period in 2023, according to HouseCanary. 

"We have concluded that buyers are reserved and find themselves in a wait-and-see situation, while they are eager to see a decrease in macroeconomic pressures and an increase in affordable housing options," Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary said. 

This "wait-and-see" mentality has caused an increase in "stale" home listings that sit on the market for more than 30 days. The median number of days homes are on the market stands at 37 as of June, up 5.7% from one year prior when the median was 35 days.

Fortunately, June's contract volume was up 4.7% compared to the same period last year according to the report, signifying a weakening "lock-in effect" that has kept many prospective buyers hesitant and sellers languishing. 

"Therefore, we are cautiously optimistic that once those macroeconomic headwinds no longer hinder buyers' capabilities, we can see home buying activity start to normalize and return to historical levels," Sicklick continued. "For now, as we enter July, we can expect the market to remain quiet as potential buyers are waiting for prices to drop."