Updated
Updated · Greater Baton Rouge Business Report · Jul 7
US Housing Market Rebalances as Asking Prices Drop 2.5% and Inventory Rises
Updated
Updated · Greater Baton Rouge Business Report · Jul 7

US Housing Market Rebalances as Asking Prices Drop 2.5% and Inventory Rises

2 articles · Updated · Greater Baton Rouge Business Report · Jul 7

Summary

  • 44% of agents in CNBC’s second-quarter survey said the US housing market is now balanced, up from 30% in last year’s third quarter after years favoring sellers.
  • More listings, slower price growth and more realistic seller pricing are driving the shift, with Realtor.com reporting a 2.5% year-over-year drop in June asking prices—the largest since it began tracking.
  • May existing-home sales rose 3% from a year earlier, and agents reported fewer price cuts and fewer failed contracts as homes are priced more competitively.
  • Affordability still limits demand: the average 30-year fixed mortgage rate is about 6.6%, and inventory, though improved to roughly 1.1 million homes, remains historically tight.
  • Agent sentiment has cooled despite the better balance, with only 19% expecting sales to improve in the near term versus 48% a year ago.

Insights

The U.S. housing market is in a standoff. Who will blink first: buyers facing high rates or sellers refusing to cut prices?
As the national housing market cools, why are some Midwest and Northeast cities still seeing home prices surge to new highs?