Outstanding home sales fell in July, according to data released Monday by the National Association of Real Estate Agents (NAR), which fell for the second month in a row amid a rise in house prices .
NAR’s outstanding home sales index fell 1.8% in July after falling 1.9% in June. Sales fell 8.5% year-on-year from July, falling as house prices continued to break records during the first half of 2021.
“It is possible that the market will start to cool slightly, but at the moment there is not enough supply to meet the demand of potential buyers,” said Lawrence Yun, chief economist at the NAR. “That said, inventory is slowly rising and homebuyers should start seeing more options in the coming months.”
Both home sales and prices skyrocketed for much of 2020, as the onset of the pandemic and the government’s response to the crisis began the buying boom. But this rise in home purchases depleted an already insufficient housing supply, prices out many potential buyers.
The average selling price of a detached house rose to $ 390,500 and the average price reached $ 446,000 in July, according to federal data, each with a new record. The same month, new housing construction fell 7 percent while builders struggled to recover the accumulations accumulated throughout the pandemic.
“The homes that are for sale are still gaining a lot of interest, but the multiple frantic bids (sometimes double-digit bids on a property) have dissipated in most regions,” Yun said.
“Even in a slightly quieter market, several potential buyers continue to opt to give up appraisals and inspections.”
A steady decline in home sales could force sellers to cut prices and give buyers more time and flexibility when buying homes. But proponents of affordable housing have urged policymakers to take steps to expand the supply of affordable housing, especially after the COVID-19 pandemic left millions homeless and financially vulnerable.
The $ 3.5 trillion plan for democratic infrastructure, social services and climate will include billions of dollars to build public housing and encourage private construction of cheaper housing.
Republican lawmakers have ruled out supporting this package, which is intended to be passed only by Democratic votes through the budget conciliation process. But lawmakers on both sides have expressed support for zoning law reform measures that would facilitate the construction of affordable housing in areas that had previously been excluded through regulations.