February 2023
In its continued effort to curb inflation, the Federal Reserve raised its benchmark
interest rate in February by a quarter-percentage point to 4.50% - 4.75%, its 8th
rate hike since March of last year, when the interest rate was nearly zero. Mortgage
interest rates have dipped slightly from their peak last fall, leading pending sales to
increase 8.1% month-to-month as of last measure, but affordability constraints
continue to limit homebuyer activity overall, with existing-home sales declining for
the twelfth consecutive month, according to the National Association of Realtors®
(NAR).
New Listings were down 15.9 percent to 1,134. Pending Sales decreased 8.3
percent to 1,118. Inventory grew 62.9 percent to 1,851 units.
Prices moved higher as Median Sales Price was up 1.8 percent to $254,495. Days
on Market increased 53.3 percent to 46 days. Months Supply of Inventory was up
100.0 percent to 1.6 months, indicating that supply increased relative to demand.
With buyer demand down from peak levels, home price growth has continued to
slow nationwide, although prices remain up from a year ago. Sellers have been
increasingly cutting prices and offering sales incentives in an attempt to attract
buyers, who have continued to struggle with affordability challenges this winter. The
slight decline in mortgage rates earlier this year convinced some buyers to come off
the sidelines, but with rates ticking up again in recent weeks, buyers are once again
pulling back, causing sales activity to remain down heading into spring.
Information courtesy of CMLS*
