Sales in the Clark County real estate market slowed sharply in June, according to the Clark County Market Report by Mike Lamb, a broker with Windermere Northwest Living in Vancouver.
RMLS reported 674 new pending home sales in June, down 23.2% from May and up 32.7% from June 2021. The number of new pending sales reported in June was the lowest for a month since June 2012. in terms of Lamb wrote in his report that the change in June was smaller than the 29.9% decline in new pending sales from December to January of this year, but such changes are not unusual in December and January. However, it was the biggest change in new pending sales recorded in June since 2010. As a result, there were 1,197 pending sales awaiting closing at the end of the month, down 13.3% from May and the smallest monthly backlog of pending sales since June 2011. At the rate of closing sales in June, that was just 1.3 months of closings, according to Lamb’s report.
Closing activity also slowed in June, although not as much as new pending sales, because those closings largely reflect new sales activity in May, according to the report. Lamb noted that you see the new home sales report of 780 down 1.5% from May and down 19.3% from the June 2021 record. However, with the exception of June 2020, new home sales in June were weaker than any June since 2014. As a result, sales since the beginning of the year for the first time this year began to lag behind 2021. There were 4,695 year-to-date sales at the end of June, down 9.3% from June 2021’s record, but up 17.4% from June 2020. It was also up 2.7% from June 2018, which was the best June for sales to date between 2005 and the 2021 record. However, with a backlog of pending sales, year-to-date sales totals will continue to lag 2021’s record pace.
In contrast to weaker sales in June, residential activity remained strong, with 1,165 new listings, down just four listings from May and up 3.5%, according to Lamb’s report. compared to June 2021. In fact, listing activity was significantly better than any June since 2010, with the exception of June 2018, and it was down just 5.4% from that month. And due to lower new sales activity, the number of active listings rose to 1,551, up 33.9% from May and up 91.7% from June 2021. However, the number of active listings is still down 7.1% from June 2020 and 53.1% from May 2019. , and decreased by 39.7% compared to June 2018. Despite this, inventory growth meant that for every new pending home sale, there were 1.73 new housing units. And based on the number of closed home sales in June, 1.7 months of permanent inventory was available. It was the first time since July 2020 that inventory has been sitting for more than a month, Lam wrote.
Predictably, average prices began to decline in June, Lam wrote in his report. For example, the MLS-wide median sales price was $595,429, up just 0.5% from June 2021. The median home sale price was $533,800, down 1.6% from May, but still up 12.0% from $476,800 in June 2021 and up 33.8% from 398 $900 in June 2020. It was also up 101.1% from the previous June 2007 high and up 196.6% from the June 2011 low during the recession. And the median home sale price rose just 1.2% from May to $611,400, up 15.4% from $530,000 in June 2021.
Summarizing, Lam wrote, “While June’s sales changes were significant, they were not unprecedented. In fact, June’s new sales activity was better than any June between 2008 and 2012, and it was down just three pending sales since June 2013. Also, as of July 18, new sales in July were up compared to the same time in June. This, along with a healthy level of listing activity, suggests that the uptick in sales we’ve seen since March reflects a market that is realigning. Mortgage interest rates had something to do with it, but tight inventory and buyer fatigue were also factors. It should be noted that as inventories increase and prices begin to adjust, anecdotal evidence indicates that buyer activity has begun to increase. And this despite the historically low level of reserves.”