- New U.S. home listings fell 3.2% in June, reaching the lowest level since October 2023.
- The median home sale price hit a record high of $447,035, while mortgage rates hovered near 7%.
- Pending home sales decreased by 2.2%, with a high rate of cancellations at 14.9% in June.
New U.S. home listings saw a significant drop of 3.2% in June, marking the lowest seasonally-adjusted level since October 2023, according to a report by Redfin (RKT, Financial). This represents the largest month-over-month decline since February 2023. Year-over-year, new listings fell 3.4%, which is the first annual decline noted since October 2023. Active listings, the total number of homes available for sale, decreased by 0.3% month over month, the first decline in nearly a year, although they remain up 13.3% from a year earlier.
Redfin's Senior Economist, Asad Khan, noted the housing market power dynamic has shifted towards buyers due to an accumulation of listings and slowing demand. With many potential sellers discouraged by current conditions, some are opting to rent their properties instead of selling.
The housing market sluggishness is also reflected in pending home sales, which fell 2.2% month over month in June, reaching the lowest level since November 2023. The seasonally adjusted annual rate of existing-home sales was 4,159,943 units, indicating little change from both a month and a year earlier, yet marking the lowest level in nine months.
Despite a record high median home sale price of $447,035 in June, price growth has slowed to a year-over-year increase of 1%, compared to 0.7% in the prior month. Buyers have more negotiating power, with less than one-third (30.9%) of homes selling above the asking price, the lowest June share in five years. However, mortgage rates near 7% have dampened buyer enthusiasm, leading to approximately 57,000 home-purchase agreements being canceled in June, equating to 14.9% of homes that went under contract, setting a record high for June since 2017.
Real estate markets in the Rust Belt regions like Virginia Beach, Dallas, and Warren experienced notable increases in pending sales, reflecting their relative affordability. In contrast, Florida cities such as Fort Lauderdale and Miami saw the steepest declines in pending home sales.
Looking ahead, Redfin predicts home prices may start to decline on a year-over-year basis by the end of 2025, as sellers are advised to ensure competitive pricing and maintain property conditions to attract the steadied demand.
