Intense home price growth has begun to show signs of slowing down, but Realtor.com says it’s not because fewer homes have sold. The site’s chief economist says different types of homes are selling, and those are smaller, more affordable ones. Price growth has not softened either for these smaller homes: For homes sized less than 2,000 square feet, prices were up 18.6% in July. The median price for homes of all sizes increased 10.3% compared to July 2020, reaching $385,000. And homes still last just 38 days on the market, a 22 day difference from one year ago.
There are also more homes coming on the market. Inventory rose 6.5% annually in July. Even more homes went up for sale in the nation’s largest metropolitan areas, particularly in the Midwest, which saw a nearly 20% increase in homes being listed.
However, while seeing more homes going up for sale is a good sign for this white-hot market, the overall number of properties bearing “For Sale” signs was down 33.5% year over year in July. Still, seeing more properties hit the market is encouraging, says Hale.
“These are baby steps in the right direction,” says Hale. “[But] we’re so far out of balance, it’s going to take a while before it’s noticeable for buyers.”
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