June featured a continuation of the trends we witnessed in May, which, depending on the viewpoint, that means we’ve yet to reach the peak or the bottom for the ongoing inventory shortage. Thankfully, there is an expectation that as we enter the third quarter, we could start to see the highly anticipated inflection point that would start us on a path to normalcy; yet, that path will likely be long and filled with further surprises.
New inventory continued to decline further in June, although the rate of decline slowed mainly due to the constrained inventory; the new index came in at 31.1 a decrease of 15.6% from May. Used inventory continued to show some positive signs – albeit on the wings of the strong new demand – with the used index coming in at 91.5, an increase of 3.7% from May.
The ongoing pinch between limited inventory and demand for private mobility has created a situation where a vehicle could be an appreciating asset. This translated to an almost staggering increase in average listing prices for both new and used vehicles in June. New prices increased to $41,827, an increase of 11.2% year-over-year, while used prices continued their meteoric increase to $28,269, an increase of 38.6% year-over-year.
The continued decline in new inventory and current sky-high prices didn’t have an impact on days on market, which went lower for both new and used vehicles in June. The average new vehicle days on market declined to 71 days, a decline of 10.9% from May. Used days on market leveled off some to 53.9 days, though still down 32.5% from last year.
As we close the books on the second quarter, we’ll turn an optimistic eye toward a return of semiconductor supply and an end to unexpected plant shutdowns starting in July. However, early reports highlight that July could bring more of the same, and we might see further disruption before the waters finally calm.
To learn more about vehicle inventory trends, download the CarGurus Vehicle Availability Index & Insights June 2021.