June Stats: Why Aren't Prices Dropping?

For this month's market report, I could post two charts, put my feet up, open a cold one and be done with it. (mmmmmm...beeeeeeeeer) But that's not my style, and you all deserve better. Still, this won't take long.

Let's start on the demand side. The last time we had fewer closed sales than we had this June was ten years ago.

Yikes! This gives me flashbacks to that Price Is Right game where the yodeling guy climbs up the hill and the contestant can't stop him in time. What makes this chart so unbelievable - other than it revealed I'm capable of Price Is Right flashbacks - is the median price for a home in New Orleans actually went up in June.

How can prices stay elevated when demand has fallen off Mt. Bob Barker?

There's not enough inventory to send prices down. The amount of homes for sale is definitely climbing, but we're still far below the pre-pandemic peak.

Everybody seems to be waiting. Sellers aren't eager to trade a mortgage with a 3% interest rate for one at 6.875%. Buyers are online, searching, making lists and checking them twice, but they're only writing offers if the HAVE to move. (Or if they're fortunate enough to buy with cash.)

Now, if you'll excuse me, this beverage isn't gonna drink itself.