The five-month streak of record-setting home prices has ended, and the home supply is beginning to inch up.

The median home sale price was $362,750 and did not set a new, record high for the first time since early March. Instead, the median price was basically flat (-0.2%) from the four-week period ending July 25 and up 18% from a year earlier.

If low mortgage rates continue, homebuying conditions will likely improve (relative to earlier in the summer), with more options and less competition for homebuyers.

Zillow Home Value Index

The typical home value in the United States is now $298,933 (seasonally adjusted value and includes only middle price tier of homes.
Values for homes in the U.S. have increased 16.7% over 2020.

New Home Purchases Down

New single-family home sales fell 6.6% from June to 676,000 units Seasonally Adjusted Annual Rate (SAAR) from 724,000 units in May.
Average sales for the first half of the year are lower than the annual pace for 2020 (812,000 vs. 822,000 SAAR).

Existing Homes Sales Increase After Four-Month Decline

The National Association of Realtors® (NAR) reports June sales of existing homes rose 1.4% to 5.86 million units (SAAR) from 5.78 million in May.
This is 22.9% higher than 2020.

Based on closings, June sales reflect contract signings in April and May.

New Home Construction Rose for Second Month

Single-Family Housing Starts

increased 6.3% – 1.16 million homes (SAAR) in June from 1.09 million units in May.
Up 25.8% percent from 2020.

Housing Price Increases Continue to Accelerate Year-Over-Year

Annual gains range from 17 to 18 percent.
Up 18.0% from 2020.

The FHFA index shows that U.S. home values are up 50% from the peak set in April 2007 during the housing bubble and stand 90% above the low point reached in May 2011.

Homes For Sale Inventory Increased

The listed inventory of new homes for sale at the end of June stood at 353,000 units, up 7.0% from May. Up 17.3% year-over-year.
8% lower than the 1.54 million units available in 2020.

The 30-Year-Fixed-Rate-Mortgage (FRM)

The FRM remained below 3.0% for a fifth straight week.
For the week ending July 22, FRM July average weekly low was 2.78%.

Prior to March 2020, the record low for the 30-year FRM was 3.31% the week ending November 21, 2012, during the recovery from the Great Recession. (Source: Freddie Mac).