Rising inflation, soaring home prices, and increased mortgage interest rates have combined to cause a slowsown in the U.S. housing market. To help quell inflation, which reached 8.6% as of last measure in May, the Federal Reserve raised interest rates by three quarters of a percentage point in June, the largest interest rate hike since 1994. Higher prices, coupled with 30-year fixed mortgage rates approaching 6%, have exacerbated affordability challenges and rapidly cooled demand, with home sales and mortgage applications falling sharply form a year ago. New listings increased 9.2 percent for Single Family homes and 46.3 percent for Townhouse-Condo homes. Pending Sales increased 1.8 percent for Single Family homes and 17.5 percent for Townhouse-Condo homes. Inventory increased 42.9 percent for Single Family homes but decreased 41.5 percent for Townhouse-Condo homes.
Month’s Supply of Inventory increased 33.3 percent for Single Family homes and 38.5 percent for Townhouse-Condo homes.
Median Sales Price increased 13.8 percent to $256,128 for Single Family homes and 15.6 percent to $159,000 for Townhouse-Condo homes.
Days on Market decreased 11.1 percent for Single Family homes and 54.8 percent for Townhouse Condo homes.
With monthly mortgage payments up more than 50% compared to this time last year, the rising costs of homeownership have sidelined many prospective buyers. Nationally, the median sales price of existing homes recently exceeded $400,000 for the first time ever, a 15% increase from the same period a year ago, according to the National Association of REALTORS®. As existing home sales continue to soften nationwide, housing supply is slowly improving, with inventory up for the second straight month. In time, price growth is expected to moderate as supply grows; for now, however, inventory remains low, and buyers are feeling the squeeze of higher prices all around.
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.
