If you have been looking to buy a home during the past 15 months or so, then you know firsthand how limited your options have been across many markets. This lack of homes for sale has certainly led to significant price increases and has been a significant source of frustration for many home buyers and their real estate agents. Could relief be on the horizon?
The number of homes for sale increases in June
According to the latest Realtor.com housing report for June, new listings nationwide increased 10.9% from May and 5.5% year over year. In fact, the 10 U.S. markets with the highest number of new listings had gains of 20% or more from last year. Of course, the total number of homes for sale was still much lower than normal, with a 43.1% decline from last year, the report noted. The June housing report did show an improvement over May’s 50.9% decline though.
Good news on the horizon?
Overall, many real estate economists feel that this is a good sign for the future of the real estate market. Although we are nowhere near the 6 month supply of homes for sale in the market (which is considered a balanced and healthy market), the latest trends could mean that things will continue to improve. In addition to many sellers opting to cash in on the current high prices, many would be sellers have held off from listing their homes due to the pandemic. Now as natural immunity and vaccination rates continue to increase, this has led more sellers to feel comfortable with listing their properties for sale.
For the fifth month in a row, June home prices broke a new record, as the median list price grew 12.7% to $385,000. The report also showed that price growth year over year moderated for the second straight month, down from 15.2% in May.
If we continue to see improvements in the housing inventory this should lead to more price moderation. In addition, we expect mortgage rates to continue to rise slowly in the foreseeable future which will also keep prices in check. Other factors such as inflationary pressure and wage growth will also play significant roles in the future of housing prices. Overall, locations such as South Florida should continue to remain in high demand particularly if many companies adopt remote working environments permanently.
Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. At Live South Florida Realty, Inc., we have been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!