The numbers: Existing-home sales edged higher as the inventory of homes for sale grew, giving buyers some more breathing room in a tough market.
What happened: Existing sales rose in three of the four regions nationally, with the Northeast being the lone region not to see a monthly increase. Still, sales remained even with June’s figures in the Northeast. The Midwest saw the largest gain from June, with a 3.8% uptick, followed by the West and the South .
“ In July, unsold inventory equated to a 2.6-month supply of homes. A six-month supply of homes is considered to be a balanced market. ” More homes on the market mean fewer bidding wars and less price pressure. “Already, the easing of the inventory squeeze has reduced the month-to-month pace of price gains,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a research note.
So long as the world continues to return to normal as vaccinations roll out, home sales should continue now at a pre-pandemic pace, many economists suggest, which would reduce the upward pressure on prices.
The current generation of young buyers don't like to settle for starter homes and will stretch themselves to flex to folks who don't care.