New home sales beating big in July, but foreshadowing depressed consumer confidence for August; reaction and analysis from Sheryl Palmer, CEO of Taylor Morrison Homes.
More sellers appear to be ready to put their houses on the market, but inventory is still failing to keep pace with a surge in demand.
According to Zillow’s weekly market report, the number of new homes on the market is recovering closer to levels seen before the pandemic.
New for-sale listings were down 10.6 percent last week, the report showed, which marks the narrowest gap since late March.
However, new pending sales were up 16.5 percent year over year, marking the largest jump since February.
Due to the strong appetite among homebuyers inventory levels were still down 28.9 percent when compared with the same period last year.
Home sellers accepted an offer in 13 days, which is 13 days faster when compared with the same period last year.
“We are witnessing a true V-shaped sales recovery as home buyers continue their strong return to the housing market,” National Association of Realtors chief economist Lawrence Yun said in a statement. “Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
Pending home sales rose by double-digits across all areas of the U.S. in July, according to the realtor’s association.
“If 20% more homes were on the market, we would have 20 percent more sales, because demand is that high,” Yun added.