The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer more affordable cost of living.
New listings increased 12.7 percent for Single Family homes and 27.8 percent for Townhouse-Condo homes. Pending Sales increased 5.0 percent for Single Family homes and 6.3 percent for Townhouse-Condo homes. Inventory increased 12.8 percent for Single Family homes but remained flat for Townhouse-Condo homes.
Month’s Supply of Inventory increased 11.1 percent for Single Family homes but remained flat for Townhouse-Condo homes.
Median Sales Price increased 16.1 percent to $245,000 for Single Family homes and 18.3 percent to $170,000 for Townhouse-Condo homes.
Days on Market decreased 12.2 percent for Single Family homes but remained flat for TownhouseCondo homes.
Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.
If you are wondering how current national and global situations might be impacting your property’s value, your neighborhood, or the Real Estate market in general, we are happy to provide more specific information.
If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
