The housing market cooled in July as inventory remains at inadequate levels in many regions.
Affordability appears to be impacting prospective buyers despite near record-low mortgage rates. After several consecutive months of steady growth, home sales declined over the year prior for the first time since November of 2015.
Interest rates remain near all-time lows. Mortgage rates have remained flat, however, Fed Chair Janet Yellen has hinted that conditions are such that an increase in the rate may be coming later in the year.
The National Association of REALTORS reported home sales at a seasonally adjusted rate of 5.4 million homes during the month of July. This was a decrease of 3.2 percent from June, and a decrease of 1.6 percent from July of last year.
The median home price decreased from $244,100 in July, which was down 1.4 percent from June and up 5.3 percent from July of last year. The median home price has increased by nearly $12,300 in the past year alone.
There was a 4.7-month supply of housing inventory in July, which increased slightly from June. The total number of homes for sale decreased by 4.1 percent compared to July of last year.
If you or someone you know are in the market to buy or sell a home, contact me.
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