In its continued effort to curb inflation, the Federal Reserve raised its benchmark interest rate in February by a quarter-percentage point to 4.50% - 4.70%, its 8th rate hike since March of last year, when the interest rate was nearly zero.
Mortgage interest rates have dipped slightly from their peak last fall, leading pending sales to increase 8.1% month-to-month as of last measure, but affordability constraints continue to limit homebuyer activity overall, with existing-home sales declining for the twelfth consecutive month, according to the National Association of Realtors® (NAR).
New listings increased 6.9 percent for Single Family homes but decreased 17.0 percent for Townhouse-Condo homes. Pending Sales decreased 3.4 percent for Single Family homes but increased 2.0 percent for Townhouse-Condo homes. Inventory increased 109.4 percent for Single Family homes and 19.7 percent for Townhouse-Condo homes.
Month’s Supply of Inventory increased 162.5 percent for Single Family homes and 40.0 percent for Townhouse-Condo homes.
Median Sales Price increased 1.3 percent to $235,000 for Single Family homes and 29.6 percent to $175,000 for Townhouse-Condo homes.
Days on Market increased 70.4 percent for Single Family homes and 207.1 percent for TownhouseCondo homes.
With buyer demand down from peak levels, home price growth has continued to slow nationwide, although prices remain up from a year ago. Sellers have been increasingly cutting prices and offering sales incentives in an attempt to attract buyers, who have continued to struggle with affordability challenges this winter. The slight decline in mortgage rates earlier this year convinced some buyers to come off t he sidelines, but with rates ticking up again in recent weeks, buyers are again pulling back, causing sales activity to remain down heading into spring.
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.
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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.
