1st Look at Local Housing Markets in June
Sales Down Sharply
This is the first look at local markets in June. I’m tracking about 35 local housing markets in the US. Some of the 35 markets are states, and some are metropolitan areas. I’ll update these tables throughout the month as additional data is released.
We are seeing a significant change in inventory, and maybe a pickup in new listings. So far, most of the increase in inventory has been due to softer demand - likely because of higher mortgage rates - but we need to keep an eye on new listings too.
Denver, Las Vegas, Northwest, San Diego and Santa Clara
Here are a few local comments …
From Denver Metro Association of Realtors® (DMAR): DMAR Real Estate Market Trends Report
As month-end active inventory skyrockets, the Denver Metro hit a new record for the average price of attached properties at $504,193. At the end of June 2021, Denver Metro ended with 3,122 properties on the market. It has now almost doubled that amount over the year, with a total of 6,057 properties currently sitting on the market. … “The increase in supply will eventually impact pricing, days in the MLS and the relationship between buyers and sellers, which have negatively impacted buyers’ purchasing power,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “The stock market, inflation and cryptocurrency have all taken a hit in the last few months. Housing will eventually be a victim to the economy as a whole, but just how much is yet to be seen. It is realistic to see days in the MLS, currently sitting at a historic low of four, increase in the coming months.”
emphasis added
From Las Vegas Realtors® Local home prices post first monthly decline since 2020, LVR housing statistics for June 2022
LVR reported that the median price of existing single-family homes sold in Southern Nevada through its Multiple Listing Service (MLS) during June was $480,000. That was down from the all-time record price of $482,000 in May, marking the first time since April of 2020 that local home prices declined from one month to the next. The median price is still up 21.5% from $395,000 one year ago.
By the end of June, LVR reported 5,746 single-family homes listed for sale without any sort of offer. That’s up 134.1% from the same time last year. Likewise, the 1,340 condos and townhomes listed without offers in June represent a 133.0% jump from one year earlier.
From the Northwest MLS: Brokers, home buyers welcome growing inventory and market returning to "some sense of normalcy"
Housing statistics from Northwest Multiple Listing Service for June show signs of a shifting market, creating opportunities for some buyers. Compared to a year ago, Northwest MLS (NWMLS) brokers reported a healthy jump in inventory, double-digit drops in both pending and closed sales, and the smallest year-over-year (YOY) increase in prices since June 2020. …
At the end of June there were 13,405 active listings of single family homes and condominiums in the Northwest MLS database, which includes 26 of the state's 39 counties. That's more than double the inventory of a year ago (6,358 listings), and the best selection since October 2019 when buyers could choose from 14,379 listings.
Active Inventory in June
Here is a summary of active listings for these housing markets in June. Inventory usually increases seasonally in June, so some month-over-month (MoM) increase is not surprising. However, for these markets, inventory was up almost 50% from May to June.
Inventory in these markets were down 28% YoY in February, down 4% YoY in March, up 10% YoY in April, and up 44% YoY in May, and are now up 83% YoY! So, this is a significant change from earlier this year. This is another step towards a more balanced market, but inventory levels are still historically low.
Notes for all tables:
New additions to table in BOLD.
Northwest (Seattle) and Santa Clara (San Jose)
New Listings in June
And here is a table for new listings in June. For these areas, new listings were up 3.1% YoY.
Last month, new listings in these markets were up 4.7% YoY. Overall, we aren’t seeing a huge surge in new listings in these markets.
Closed Sales in June
And a table of June sales. Sales in these areas were down 23.4% YoY, Not Seasonally Adjusted (NSA). Contracts for sales in June were mostly signed in April and May, when mortgage rates were lower than in June.
Much more to come!