Home sales climb in July as prices rise
Finding a home to purchase in the 256 is a challenge and the price of that home is up. I know, I know. Water is wet and it is hot outside. These are just facts that you probably already know. But, if you are a numbers person, read on for the latest report.
Existing-home sales in the South rose 1.2% in July, recording an annual rate of 2,630,000, up 1.2% from the same time one year ago. The median price in the South was $305,200, a 14.4% jump from one year ago.
That compares to a national year to year increase of 1.5% and a month to month increase of homes sales by 2%. Three of the four major U.S. regions recorded modest month-over-month gains, and the fourth remained level.
"We see inventory beginning to tick up, which will lessen the intensity of multiple offers," said Lawrence Yun, NAR's chief economist. "Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren't seeing as much growth because there are still too few starter homes available."
Our local association of REALTORS reports 930 homes sold in July of 2021. That is up by just one home from July of last year. The number of homes sold in our area is actually down according to ValleyMLS.com. The average price for a home in Huntsville is about 9% higher than the median price in the South, according to the National Association of REALTORS.
While inventory remains a concern, Yun says we should see an increase in available homes and that will help home prices level off.
Total housing inventory at the end of July totaled 1.32 million units, up 7.3% from June's supply and down 12.0% from one year ago (1.50 million). Unsold inventory sits at a 2.6-month supply at the present sales pace, up slightly from the 2.5-month figure recorded in June but down from 3.1 months in July 2020.
"Although we shouldn't expect to see home prices drop in the coming months, there is a chance that they will level off as inventory continues to gradually improve," said Yun.
More information: nar.realtor