St. Louis Townhouses & Condos: More Options, Rising Demand
Jul 26, 2024
Written David Dodge
The U.S. housing market has been on a tear for the past few years, with homes selling quickly and prices skyrocketing. But is this trend finally starting to cool down? Recent data from the National Association of Realtors (NAR) suggests that there may be a shift happening.
In this blog post, we'll delve into the latest housing market statistics, exploring the decline in existing home sales, the changing inventory landscape, and the continued rise in home prices. We'll also discuss what these trends might mean for the future of the housing market.
U.S. Housing Market Update: Sales Down, Prices Up
The U.S. housing market is showing signs of cooling, with existing home sales declining for the third consecutive month according to the National Association of Realtors (NAR). This comes amid rising mortgage rates and increasing sales prices.
Sales Soften
Sales of previously owned homes dipped 0.7% month-over-month and 2.8% year-over-year, to a seasonally adjusted annual rate of 4.11 million units in June. This suggests that some potential buyers are being priced out of the market or are waiting for conditions to improve before making a purchase.
Inventory Shifts
Some interesting trends are emerging in terms of housing inventory. New listings decreased by 7.6% for single-family homes but increased by 18.7% for townhouses and condos. This suggests that there may be a shift in buyer preferences towards more affordable housing options.
Pending sales, which are an indicator of future sales activity, also showed a mixed picture. They decreased by 5.5% for residential homes but increased by 21.4% for townhouses and condos. This suggests that demand may be softening for traditional single-family homes, but there is still interest in attached properties such as townhouses and condos.
Inventory levels also varied depending on the property type. Inventory decreased by 3.7% for residential homes but increased by 42.1% for townhouses and condos. This could be due to several factors, including a slowdown in new construction of single-family homes and an increase in the number of condo conversions.
Prices Keep Climbing
Despite the slowdown in sales activity, median sales prices continue to rise. The median sales price increased by 6.8% to $329,900 for residential homes and 5% to $236,300 for townhouse/condo homes. This is likely due to a combination of factors, including low inventory levels and strong demand from cash buyers.
Market Outlook
The housing market is at a crossroads. While sales are declining, prices are still rising. It remains to be seen how long this trend will continue. If mortgage rates continue to rise and affordability becomes a bigger concern, we could see a more significant slowdown in sales activity in the coming months. However, if inventory levels continue to increase, it could help to moderate price growth.
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