With the surge of active listings by 35 housing prices begin to cool off

New York City’s Upper East Side is a townhouse for sale. Adam Jeffery | CNBC
Part of the heat comes from housing prices, which are still higher than a year ago. Several new reports show that after a stagnant spring market, price gains are slowing and home sellers are starting to make concessions. Data from real estate brokerage Redfin shows that home sales have stalled since the start of the COVID-19 pandemic, with median home prices dipping below their list prices for the first time in the four weeks ending June 23, down 0.3%. A year ago, the typical home was selling for more than its list price. Two years ago, it was going for about 2% above list. This isn’t to say that the housing market is crashing. Last month, fewer than two-thirds of homes sold above list price, the lowest share since June 2020. While most sellers are still selling homes for more than similar homes a year ago, some are admitting that they don’t have control over those prices.
Read more on the U.S. consumer news and business channel about real estate news U.S. Bank says housing market will be at least ‘stalled’ until 2026 as mortgage rates and demand signal slow summer housing market
Mortgage rates remain high, with the average rate for a 30-year fixed mortgage staying above 7% for the third consecutive month, according to Mortgage News Daily. The closely watched S&P Case-Shiller index shows home prices rose 6.3% in April compared with April 2023. May’s prices continued that trend. Homes are now 47% more expensive than they were in early 2020, with the median sales price being five times the median income. CNBC has an exclusive look at another housing price index from ICE Mortgage Technology set to be released next week. The data shows that the annual gain in home prices in May slipped to 4.6% from 5.3% in April, the slowest increase in seven months. Supply is starting to increase, leading to price declines. According to Realtor.com, the total number of active listings is 35% higher than a year ago. However, inventory is still down more than 30% from typical pre-pandemic levels, even after recent gains. “Some buyers think they can get a deal because they hear the market is cold, while some sellers think every house will sell for the highest price regardless,” Marije Kruythoff, a broker at Redfin in Los Angeles, said in a news release. “In reality, it all depends on the house and the location.”
Don’t miss these insights from CNBC PRO. The BTIG S&P 500 index suggests that these Nasdaq stocks are expected to fall as the second half of the year begins. Tom Lee of Fundstrat continues to make bullish calls on stocks, with the latest locked in on a chart pattern for Nvidia that could signal a peak for the stock, watching to see if troubling chart patterns for Nvidia and other tech companies indicate an upcoming sell-off.