Despite still increasing interest rates, fewer pending sales, and hesitant buyers, a record low inventory of homes available for sale has translated to home prices nationwide remaining almost as high as they were in 2022. According to a new report from the real estate website Redfin, the median home price in July reached $421,872, a 2.5 percent difference from the record high of $432,476 that was set in May of last year.
When it comes to the number of pending sales across the country, levels were at their lowest just a few months ago, in March. However, though the number of pending sales has dipped 16 percent below where they were in July of last year, there’s recently been a 5.4 percent uptick in pending sales, with the number of deals in the works clocking in at 387,000.
“Home sales hit a bottom in 2022 and haven’t meaningfully budged since,” says Redfin chief economist Daryl Fairweather in the report. “Fading recession fears and the prospect of further home price increases have brought some house hunters off the sidelines, but for the most part, buyers remain hesitant to jump into the market because their buying power is so much lower than it was a year ago.”
Also adding to the rising prices, the total number of active listings across the U.S. dropped 3.9 percent month over month in July, marking the lowest level on record. In comparison to 2022, there were 19.5 percent fewer homes for sale in 2023, the biggest decline in over two years.
“It’s a seller’s market, but only because there’s so little inventory,” explains Salt Lake City Redfin Premier real estate agent Mitch Price. “Buyers are getting hammered by high interest rates, so they’re not just jumping on whatever is available like they were before. They don’t want to overpay, so they’re waiting for the right home. As a seller, if you overprice your home, that’s your doomsday ticket.”