With home sales slowing inventory levels were inevitably going to start trending upward. It looks like it is happening sooner rather than later, according to Altos Research’s latest weekly report…(Altos)
- Available inventory of unsold single-family homes in the US rose 8.2% this week to 344,000 homes. That could be the largest percentage week-over-week increase on record.
- At 344,000 homes we now have 6% more than last year. An impressive jump considering last week was the first time we saw year-over-year inventory growth since 2019.
Prices are continuing to climb but a slowdown does seem imminent…
- The price for a median single-family home hit another high at $443,000, up 11% from the same time last year.
- Homes on market with price cuts climbed to 22% this week. It looks like by end of summer we’ll be back into our normal 30% range.
Prices tend to lag inventory movement so it is not surprising that inventory and prices are moving in the same direction. Similar to the start of the current rate hike cycle when inventory was falling as rates climbed. However, eventually rising inventory will slow prices and we are already seeing that in future sales as homes on market are having to cut prices to stay competitive. The market is working…