The U.S. real estate market continues to slow as we move into fall, as rising consumer prices and higher mortgage interest rates squeeze homebuyer budgets and cool activity. With inflation showing little sign of abating, the Federal Reserve implemented another 75-basis-point hike in September, marking the third such rate increase this year. The cost of borrowing has reached multi-year highs on everything from credit cards to auto loans in 2022 as mortgage rates topped 6% for the first time since 2008, causing existing home sales to decline for the seventh consecutive month. New listings increased 4.9 percent for Single Family homes but decreased 7.5 percent for Townhouse-Condo homes. Pending Sales decreased 12.3 percent for Single Family homes but increased 15.7 percent for Townhouse-Condo homes. Inventory increased 52.7 percent for Single Family homes and 40.6 percent for Townhouse-Condo homes.
Month’s Supply of Inventory increased 61.5 percent for Single Family homes and 43.8 percent for Townhouse-Condo homes.
Median Sales Price increased 11.4 percent to $245,050 for Single Family homes but decreased 1.7 percent to $142,500 for Townhouse-Condo homes.
Days on Market increased 35.3 percent for Single Family homes and 143.8 percent for Townhouse-Condo homes.
Affordability challenges have priced many buyers out of the market this year, and buyers who do succeed in purchasing a home are finding that the costs of homeownership have increased significantly, with monthly mortgage payments more than 55% higher than a year ago, according to the National Association of REALTORS®. Inventory remains lower than normal, and as the market continues to shift, experts project homes begin to spend more days on the market and price growth will slow in the months ahead.
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.
