Summary
Inventory continues to rise while monthly new pendings decline. Last month’s new under-contract sales were down 6% compared to the prior month but still running strong for this time of the year—up 17% compared to the same month in 2019. Active listings rose 6% in the past month and are now up 6% compared to the same time last year. As the market continues to normalize, expect to see more typical seasonality with respect to sales velocity and values. As the extreme buyer demand and competition seen earlier in the year cools, both year-end sales and prices will tail off (see chart above). The shortage of affordable move-in-ready homes will keep those prices up in the middle price ranges but expect most upper price ranges to level.
