Homes selling near record high again as supply shortage worsens

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ProChain President David Tawil explains why he predicts rate hikes are on the horizon and likely to stay high 'for a number of years.'

U.S. home prices surged again in June to a near record high, reflecting a worsening inventory shortage that has pushed many would-be homebuyers out of the market. 

Median home prices jumped 1.9% in June from the previous month, hitting $426,056, according to a new report from real estate brokerage firm Redfin. Home prices are now down just 0.6% from where they were one year ago and down 1.5% from the record high hit in May 2022. 

«Today’s housing market is extraordinary; it feels hot even though there are very few homes changing hands,» Redfin chief economist Daryl Fairweather said. 

COMMERCIAL REAL ESTATE MARKET COULD CRASH SOON. HERE’S WHY

Homes in Rocklin, California, on Dec. 6, 2022. ( David Paul Morris/Bloomberg via Getty Images / Getty Images)

That is largely due to a lack of available homes for sale.

Sellers who locked in a low mortgage rate before the pandemic began have been reluctant to sell with rates continuing to hover near a two-decade-high, leaving few options for eager would-be buyers.

A recent report from Realtor.com showed that the number of available homes on the market in June was down more than 47% from the typical amount before the COVID-19 pandemic began in early 2020.

«Sellers are getting multiple offers if their home is priced well and in a desirable area, even though there aren’t a lot of buyers out there,» Fairweather said. «That’s because house hunters have so few homes to choose from. More buyers are starting to come out of the woodwork as they get used to elevated mortgage rates, which is making the market feel even hotter.»

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