Sales this June were 7% lower that they were last June. Average and median prices increased for the trailing 12 months by 13 and 16 percent respectively and inventory climbed 22% over the last year. These are all signs that the market may be softening.
It's interesting that new home sales increased this June over last June by 15% while closings on resale homes decreased by 6% for those same months. There is only a 5% difference in price per square foot between the higher priced new homes and resale homes. I would normally expect that difference to be closer to 20%. It's interesting to note that, while new home sales are 33% of total sales, new home pending contracts are 47% of the total. Are buyers finding the new home market more attractive than the resale market?
It may be that resale properties in particular may need to be priced more cautiously.
Let's watch next month for signs that these statistics point to a trend or just a blip.