- There were 45,000 fewer homes available to buy in July compared to a year ago, Realtor.com reported.
- The total number of homes for sale decreased by 9.1% compared to last July.
There were 45,000 fewer homes available to buy on a typical day in July compared to a year ago, according to Realtor.com data.
Despite a month-over-month increase, active inventory fell 6.4% year over year, marking the first annual decline since April 2022.
"The lack of newly listed homes has contributed to a renewed inventory crunch, as July saw fewer homes on the market compared to last year for the first time in several months," Realtor.com researchers Danielle Hale and Sabrina Speianu wrote.
The total number of homes for sale, including those that weren't sold but remained under contract, fell by 9.1% year over year, marking the third month in a row of annual declines.
At the same time, home sellers aren't participating in the market nearly as much as last year. Newly listed homes cratered 20.8% in July on a year-over-year basis.
"Potential home-sellers, locked-in to previously low rates and not yet confident that mortgage rates will decline, are continuing to sit on the sidelines, contributing to a renewed inventory crunch," the Realtor.com researchers said.
This week, the average 30-year fixed mortgage climbed to 7.13%, edging closer to last October's peak of 7.37%.
The American Enterprise Institute Housing Center, a Washington DC-based think tank, forecasted on Tuesday that the housing market is likely to become less affordable over the coming years.
"This is largely due to historically low supply, cooling yet still strong job numbers, low levels of foreclosures in most areas of the country, work from home, and continuing home price arbitrage opportunities," AEI said.