Summer 2022 has been a season of change for the U.S. real estate market. With
housing affordability at a 33-year low, existing-home sales have continued to soften
nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last
measure, according to the National Association of REALTORS® (NAR). Pending
home sales have also continued to decline, while new listings have steadily
increased, with unsold inventory reaching 3.3 months’ supply at the start of August.
The pullback in demand has been particularly hard on homebuilders, causing new home
sales and construction to slow.
New Listings were down 1.0 percent to 1,634. Pending Sales decreased 8.0 percent
to 1,388. Inventory grew 41.5 percent to 2,082 units.
Prices moved higher as Median Sales Price was up 20.3 percent to $276,790. Days
on Market increased 22.2 percent to 22 days. Months Supply of Inventory was up
45.5 percent to 1.6 months, indicating that supply increased relative to demand.
Inflation, higher interest rates, and fears of a potential recession have taken a toll on
buyers and sellers this summer, leading many people to stay on the sidelines to see
what will happen with the market. But some experts, including NAR Chief Economist
Lawrence Yun, believe the worst of inflation may be over. Although sales prices
remain up from this time last year, price growth is expected to moderate in the
months ahead as the market continues to shift in a more buyer-friendly direction.
Information courtesy of CMLS*