At the end of August, there were 461,000 homes for sale, but only 49,000, or 10.5% were actually completed. Currently, with the pace of sales, there is an 8.1-month supply, but when you consider the number of completed homes, the month’s supply is less than 1 month.
CoreLogic also released the National Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation. The report showed home prices fell 0.3% in July, but increased by 15.8% year over year. This is a decline from the previous report of 18.1% in June, but it’s still strong. Even though the national index did show a month-over-month decline, the majority of that decline was seen in a few large cities. The decline was not widespread. San Francisco, Seattle, San Diego, LA, and Denver showed steep month-over-month declines. On the flip side, a few Southern Florida cities observed strong month-over-month gains.
Lastly, the Federal Housing Finance Agency released its House Price Index. This report measures home price appreciation on single-family homes with conforming loan amounts. The report differs slightly from Case-Shiller in that it does not include cash buyers or jumbo loans. The FHFA reported that prices fell 0.6% in July and are up 13.9% year over year. This was a decline from 16.2%, but still solid on an annual basis.
While these reports are on a national level, it is important to understand that the majority of declines were seen in just a few larger cities. Many increased in appreciation or remained unchanged. Home prices are still strong and there is still a lot of opportunity in the housing market.
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2022 National Sales Conference Tickets, Thursday, November 17, 2022 • Starts at 9 AM