According to HAR, total active listings, or the total number of available properties, increased 27.4 percent to 29,344. June sales of all property types totaled 11,921, down 9.1% compared to June of last year. As a result, the absorption rate for June 2021 was 41%. That's still really strong historically, even if it isn't as dramatic a number as we have seen over the past year.
Homes continue to sell pretty quickly. Despite the slowdown last month, the Days on Market (DOM), or the number of days it took the average home to sell, fell to 28 days in June. This number has been falling most of the year.
Inventory levels are on the rise, which is providing a few more options for home buyers. Inventory ticked up slightly to 2-months compared to 1.6 in May. Housing inventory nationally stands at a 2.6-months supply, according to the latest report from the National Association of Realtors (NAR). A 6.0-months supply is generally considered a “balanced market,” in which neither the buyer nor the seller has an advantage. So we do have a little ways to go before the market gets more into balance.
As we enter the hot summer months, we should expect a further slowdown in market activity. July and August are typically slower than the Spring Months. After labor day, we will probably see a little bit of a bounce back if the market follows historic patterns. That means buyers may find some additional opportunities to negotiate and shop for homes over the next couple of months. Over the long term, we expect home prices to hold relatively close to current levels if inventory levels remain at current levels.
Whether the market is booming or slow, be prepared. Make sure you have the information you need to make an informed decision on when to start house hunting or listing your home. Contacting a Norhill Realtor is a good place to start. Get connected with one of our experienced agents who can talk you through the market in the neighborhoods you care about as well as discuss the timing for either selling or buying.
Norhill Realty provides expert real estate services to residential buyers and sellers in Houston and surrounding communities. Contact us today for more information on Houston real estate and for professional assistance navigating this sometimes complex home market.
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