Listings took a hit in July, but both listed and closed prices saw positive YOY growth, according to new data from HouseCanary.
The company’s latest Market Pulse report found that net new listings dwindled in July, down 40.3% YOY. The number of properties that went under contract also fell by 13.4% from the same time last year.
“In June, the housing market initially showed signs of resilience, but these reversed as we continued to face the effects of rate hikes initiated in March 2022,” said Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary. “July has followed suit with stagnant performance as the Federal Reserve implemented another rate increase and potential homebuyers remained cautious amidst market uncertainties.”
New listing volume in particular slipped 36.5% YOY as homeowners remain reluctant to sell, locked in by sub-5% mortgage rates.
Total inventory is now down 13.3% from the same time last year and is incredibly depressed from a historical perspective, HouseCanary analysts said.
Prices have rebounded, however, with price cuts down more than 40% from recent peaks.
“Notably, listed prices reached their peak in June, but closed prices have maintained steady and rapid growth into July. As we move into Q3, it is anticipated that both listing and closed prices will continue to rise compared to the previous year, offering some relief from the upcoming rate hikes,” Sicklick added.
On the other hand, rental inventory has seen a spike. Total single-family rental inventory is up 51% YOY and up 157.7% from 2021.
With affordability near historic lows and the dream of homeownership out of reach for many Americans, investors have made rental properties a priority. The construction of new build-to-rent homes hit a record in 2022, with more than 14,500 houses completed. This is an all-time high.
With so many new properties on the market, rent increases have finally cooled some, however. Zillow reported this week that rent inflation has slowed to “perfectly normal” growth compared to the sharp increases of last year.
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