U.S. housing prices increased 5.7 percent year-over-year in June, the smallest price increase since December 2016.
According to Redfin, the new median home price in June was $312,700. In addition, the number of homes on the market in June was down 6 percent year-over-year, maintaining easing inventory declines that began in January of this year.
Notably, in what have been the most competitive places for homebuyers, inventory is increasing, providing welcome relief for some buyers. The number of homes for sale in June increased by double digits in Portland (31.6%), San Jose, CA (11.9%) and Seattle (24.2%). These markets also experienced sales declines of 9.6 percent, 16.3 percent and 10.1 percent, respectively.
“The affordability crisis may have reached a breaking point in Portland, San Jose and Seattle,” says Redfin CEO Glenn Kelman. “After 75 straight months of price increases in these markets that far outpaced wage growth, homebuyers are now becoming selective about which homes to buy, and at what price.”
