The US housing market began the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the market is headed.
Nationally, pending sales rose 2.5% month-to-month, making it the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of REALTORs. Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.
New listings increased 5.1 percent for Single Family homes and 21.9 percent for Townhouse-Condo homes. Pending Sales decreased 14.2 percent for Single Family homes but increased 35.4 percent for Townhouse-Condo homes. Inventory increased 101.4 percent for Single Family homes and 38.8 percent for Townhouse-Condo homes.
Months’ Supply of Inventory
Increases Month’s Supply of Inventory increased 144.4 percent for Single Family homes and 60.0 percent for Townhouse-Condo homes.
Median Sales Price Increases
Median Sales Price increased 8.1 percent to $239,900 for Single Family homes but decreased 3.5 percent to $126,000 for Townhouse-Condo homes.
Average Days on Market Increases
Days on Market increased 46.4 percent for Single Family homes and 90.5 percent for Townhouse/Condo homes.
As sales slow, time on market is increasing, with the average home spending 26 days on the market as of last measure, according to NAR. Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.
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.
