(NewsNation) — Home prices hit another record high in June even as sales sunk to their lowest level in six months, but rising inventory suggests a buyer’s market could be on the horizon.
Last month, sales of previously occupied homes fell 5.4% from May to a seasonally adjusted annual rate of 3.89 million, the lowest number since December, according to new data from the National Association of Realtors (NAR).
Despite the pullback, home prices kept climbing as the median sale price surged to $426,900, an all-time high. The new data is the latest sign the housing market is unaffordable to millions of Americans who continue to face a nightmare trifecta of elevated mortgage rates, high prices and low inventory.
However, relief may be just around the corner. Homes are sitting on the market longer, and sellers are receiving fewer offers, NAR Chief Economist Lawrence Yun said in a statement.
“We’re seeing a slow shift from a seller’s market to a buyer’s market,” he said.
Total housing inventory is up 23% from a year ago, reaching 1.32 million units at the end of June, NAR data shows. At the current sales pace, it would take 4.1 months to sell through the inventory on the market — the highest level in more than four years and an indication that supply and demand are approaching a balance.
That’s good news for buyers who are unlikely to see “further large accelerations” in price, Yun said.
The Federal Reserve’s decision to cut or hold interest rates could have a major impact in the months ahead. The average rate on a 30-year mortgage was 6.77% last week, according to mortgage buyer Freddie Mac. That’s down from the 7.79% high last fall but more than double the rate just a few years ago.
Market dynamics also vary by region. In Florida — which prioritized building new homes — several cities have already seen a cooldown in the housing market. Meanwhile, northeastern cities like Rochester and Buffalo, New York, remain red hot.