Published on July 16, 2024
On Tuesday, Zillow released its latest monthly report on homes for sale. The total number of homes on the market has increased over the year, rising 4% from May to June, nearly 23% above last year’s low. Although inventory is still about 33% below the pre-pandemic average, it’s the smallest deficit since fall 2020, when the inventory of available homes fell rapidly.
Zillow finds that all 50 largest U.S. metro areas except New York and Cleveland have higher inventory levels than last year, and all but five are up month-over-month. Attractive listings are selling relatively quickly, but buyers still in the market have a few more days to weigh their options than they did last summer. Homes sold in June were typically on the market for 15 days before the seller accepted an offer. That’s five days less than the pre-pandemic norm, the smallest difference since June 2020.
Zillow points out that buyers’ willingness to compromise continues to be important when purchasing a home.
For example, while mortgage rates have rebounded from their May highs, buyers are still grappling with costs that have risen much faster than wages. A median-income household can only afford the mortgage payments to buy a typical home in 11 out of 50 major markets, even with a 20% down payment. With costs deterring many buyers, Zillow’s Sales Nowcast fell 9% in June from May, with sales 35% below pre-pandemic norms.
On the other hand, growth in home values has slowed as inventory rises. Annual appreciation nationwide is a reasonable 3.2%, down from a peak of 4.6% in March 2024. Monthly growth has slowed to 0.6% – the lowest June appreciation since 2011. Slower growth in home values in the coming months could give struggling buyers a chance to catch up. Zillow predicts home values will rise just 1% nationwide through June 2025.
The FEA compiles Wood Markets News from various third party sources to provide readers with the latest news impacting forest products markets. The opinions or views expressed in these articles do not necessarily reflect those of the FEA.
