2022 was a turbulent year for the US housing market, as inflation, soaring interest
rates, and elevated sales prices combined to cause a slowdown nationwide.
Affordability challenges continue to limit market activity, with pending home sales
and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-
year, respectively, according to the National Association of REALTORS®
(NAR). Higher mortgage rates are also impacting prospective sellers, many of whom
have locked in historically low rates and have chosen to wait until market conditions
improve before selling their home.
New Listings were down 14.6 percent to 858. Pending Sales decreased 13.9
percent to 840. Inventory grew 38.2 percent to 1,843 units.
Prices moved higher as Median Sales Price was up 9.7 percent to $266,010. Days
on Market increased 60.0 percent to 40 days. Months Supply of Inventory was up
60.0 percent to 1.6 months, indicating that supply increased relative to demand.
Economists predict sales will continue to slow and housing prices will soften in
many markets over the next 12 months, with larger price declines projected in more
expensive areas. However, national inventory shortages will likely keep prices from
dropping too much, as buyer demand continues to outpace supply, which remains
limited at 3.3 months, according to NAR. Even if prices fall, many prospective
buyers will find it difficult to afford a home in 2023, as higher rates have diminished
purchasing power, adding hundreds of dollars to monthly mortgage payments.
Information courtesy of CMLS*