With Housing Market Supply and Demand Out of Sync, Home-Price Declines Are Shrinking
Home prices posted a slight year-over-year decline in June, but monthly home-price drops are getting smaller
June 29, 2023
2 min read
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The median U.S. home-sale price is down 0.9% year-over-year, but according to Redfin, home-price declines are shrinking. The typical U.S. home is selling for roughly $383,000 in June 2023, that's about $4,000 less than the all-time high set in June 2022.
June’s annual price drop marks the smallest decline in nearly four months, and that newfound strength in home prices is largely due to a lack of for-sale inventory. New listings are down 27% from a year ago, the largest decline since the start of the pandemic.
“The market isn’t nearly as fast as it was 18 months ago, when homes were flying off the market for well over asking price, and it’s not as slow as it was six or seven months ago, when mortgage rates first shot up,” said Oakland, CA Redfin Premier agent Andrea Chopp. “Buyers should keep in mind that desirable homes are getting multiple offers and selling above asking price. And sellers should know that their home may not attract as much competition as their neighbor’s home did two years ago, but it will sell if they price it fairly and put effort into marketing. Things like making small repairs and staging are important again.”
