June For-Sale Listings Post Smallest Annual Decline Since January 2020
Buyer demand is softening, sellers are lowering their asking prices, and inventory is rising, but we may not be through the thick of a housing boom just yet
June 14, 2022
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Buyer demand is easing as affordability moves further out of reach, and many sellers are dropping their asking prices in response. The total number of homes for sale across the U.S. fell 8% during the four weeks ending June 5, the smallest yearly decline reported since January 2020, according to Redfin. Roughly 21% of sellers reduced their list prices during the same four-week period, meaning that a drop in for-sale supply is less an indication of waning inventory, and more a reflection of low buyer demand.
Experts anticipate a boost in homebuying activity toward the end of 2022 as price growth loses steam, interest rates normalize, and inventory levels reach new post-pandemic highs.
"Sellers are losing control of the housing market as homes that are overpriced and/or less desirable are increasingly having price reductions and taking longer to sell," said Redfin deputy chief economist Taylor Marr. "Although demand is easing, some homebuyers may jump back into the market when price growth loses steam and interest rates continue to stabilize. A strong labor market will continue to be a driving force for the bulk homebuying demand this year."
