Buyers in Lower Price Tiers Remain Sidelined as Net New Listings Continue to Fall

Anticipated Cutting of Interest Rates Later in the Year Is Expected to Result in the Easing of the Housing Market

HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its innovation and accuracy of real estate information, today released its July Market Pulse Report, finding that net new listing and contract volume remained down near multi-year seasonal lows, but signs that inventory levels are returning to pre-Covid levels are evident.

After continued increases, inventory numbers are approaching pre-COVID levels. While inventory is up 28.2% compared to July 2023 and up 9.3% from 2022, it still remains low from a historical perspective. The market is also experiencing a significant increase in price cuts, which is up 57.4% compared to this time last year. Median days on market stands at 40, an 11.1% increase from the 36 days observed in July 2023.

Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:

“The summer housing market remained quiet in July, as we had forecasted at the beginning of the month. With both net new listings and contract volume slightly down in the month compared to the prior year period, we can assume that this is still a lingering outcome from the stagnant housing market, as a result of affordability pressures for prospective buyers. Conversely, we see an uptick in net new listings when looking at the 52-week period, which was up 4.3% from the same period last year. We can presume that this continued moderate increasing of inventory levels from a multi-year standpoint creates the likelihood of driving inventory levels back up to pre-Covid levels.

Looking ahead in terms of buying costs, the Fed did not announce interest cuts this week, but experts are anticipating the Fed to start cutting rates in September. If realized, we can expect that the lowering of interest rates will result in the easing of the housing market. This can alleviate prospective buyers from the pressures of costly home-purchasing prices and financial commitments, propelled by peak mortgage rates. We will keep a close eye and continue to watch for cooling mortgage rates in the back half of the year.”

Key Takeaways:

• For the month of July 2024, 270,821 net new listings were placed on the market, and 284,636 properties went under contract. This represents a decrease of 2.9% and an increase of 4.0%, respectively, versus July 2023.
• The decrease in net new listings was driven by a 3.3% increase in new listing volume as well as a 34.3% increase in removals compared to July 2023.
• Total inventory is up 28.2% from the same period in 2023, and up 9.3% from 2022. Inventory remains on the low side from a historical perspective.
• Net new listing volume in July 2024 is down for lower price tiers and up for higher price tiers compared to July 2023.
• The median price of all single-family listings in the US was $456,988 and the median closed price was $439,839. On a year-over-year basis, the median price of all single-family listings is up 3.1% and the median price of closed listings is up 6.3%. Month-over-month, the median price of single-family listings is down 1.1% and the median price of closed listings is up 0.3%.

Methodology

The Market Pulse Report is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform, covering 22 listing-derived metrics and comparing data between June 2023 and June 2024.

About HouseCanary

Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transactions. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.

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