But while prices soared, inventory in July reached its lowest level since MAR began recording the data in 2004. The 13,788 homes for sale in July represented a 28.6 percent plummet from one year earlier, when 19,317 homes were on the market. The 2.9-month home supply in July was 29.3 percent below the previous year’s level of a 4.1-month supply. As a result, July’s home sales were 1.2 percent lower on a year-over-year measurement.
“We’re seeing it take a toll on the ability of some buyers to close transactions,” said 2017 MAR President Paul Yorkis, president of Patriot Real Estate in Medway, Mass. “The demand is still there, but it’s the combination of price and inventory that’s catching up to buyers who are on the cusp of buying their first home, which has helped cause the dip we saw in closed sales this month.”