Inventory outlook worsens

A drop in house price expectations has helped boost demand from some looking to pick up a bargain, but it has also encouraged sellers to delay listing until the price outlook improves. Indeed, selling sentiment has seen a larger drop compared to buying sentiment, and at the beginning of June new listings were still down 20% y/y, compared to a 23% y/y rise in home purchase applications. That implies inventory levels will continue to fall, ruling out a rapid recovery in existing home sales.