Sales of already existing homes in the month of July increased 2% from June, as per the National Association of Realtors.
Figures show that sales were 1.5% more than in July 2020. That is gain in the second consecutive month. Sales are most likely increasing due to the rising supply.
Despite the significant increase in supply, demand is continuing to outpace supply, pushing prices even more and an all-time high.
Annual price gains of homes were larger in the last month but compared to the huge market spike the previous summer, these comparisons are appearing smaller.
“The housing sector appears to be settling down, the market is less intensely heated than before,” said Lawrence Yun, Chief Economist for the Realtors. It is appearing to be cooling, but it still seems to be competitive.
Danielle Hale, Chief Economist at Realtor.com said, “Continued economic recovery is key to maintaining sales momentum, and anything that disrupts progress, such as rising Covid cases, could knock home sales off course.”
Danielle added, “Still, with listing price growth beginning to recalibrate in response to shifting supply and demand dynamics, we should see a steady pace of home sales over the next few months, especially if mortgage rates remain low.”
