Number Of Homes For Sale – Change from July 2017 to July 2018
+44% in San Jose
+29% in Seattle
+19% in Portland
+18% in San Diego
+15% in Dallas
While the inventory of homes for sale was increasing in some of the hottest markets, inventory was tightening up in some other markets like Indianapolis and Milwaukee.
Looking just at California, the median home sold price was up 8.5% (June 2017 to June 2018) (to $602,760) which is very strong but the number of homes sold was down 7.3% despite an increase in the number of homes listed for sale, up 8.1%.
The real estate industry has been saying home sales have been low because of the low inventory of homes for sale, not because of high home prices. In California in June, however, the number of homes sold decreased even though the inventory of homes for sale increased. Maybe high prices have been the culprit all along.  The California Association of Realtors President Steve White seems to agree, “The lackluster spring homebuying season could be a sign of waning buyer interest as endlessly rising home prices and buyer fatigue adversely affected pent-up demand.”
The hottest U.S. real estate market for price increases the last two years has been Seattle. That’s changing this summer. According to The Seattle Times, the median home sold price in King County was only up 6.3% (July 2017 to July 2018) (to $699,000). The number of homes sold in July was the lowest for a July since 2012. Unexpectedly, the number of single-family homes listed for sale in King County increased 44% from July 2017 to July 2018!
Nationally, the U.S. real estate market may not be peaking but it’s looking like some of the hottest markets are certainly losing their upward price momentum.