Is it a seller’s market or a buyer’s market? Fresh numbers on existing home sales this week show that sales slid 5.4% in June from May to an annual pace of 3.89 million units. Sales fell the same amount on a year-over-year basis as well, according to the National Association of Realtors (NAR). NAR Chief Economist Lawrence Yun said “We are seeing a slow shift from a seller’s market to a buyer’s market…homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”

To that end, new home sales surprisingly fell to the lowest level in seven months. The Commerce Department said new home sales fell 0.6% to an annual pace of 617,000. That follows a 15% drop in May, which was the biggest in two years. Mortgage rates are virtually unchanged this week, which may not lend itself to more thawing in the housing market. According to lending giant Freddie Mac, the average rate on the 30-year fixed home loan now stands at 6.78%. 

Like a soothsayer, Redfin Chief Economist, Daryl Fairweather predicted this trend. In our recent Market Overtime episode, Fairweather said it could take a decade to unlock inventory. But she says don’t just wait on the sidelines. She says 5% is the trigger to see more unlocking — watch our Market Overtime interview in the link below to see when she predicts we will hit that level, and her assessment of the housing market, and the road ahead.

Tune in live from 8 a.m. to 5 p.m. ET, or anytime, anywhere, on‑demand.

Or stream it via thinkorswim® and thinkorswim Mobile, available through our broker-dealer affiliate, Charles Schwab & Co., Inc

Please do not reply to this email. Replies are not delivered to Schwab Network. For inquiries or comments, please email [email protected].

See how your information is protected with our privacy statement. 

Charles Schwab and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions. Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a wholly owned subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.