August 2023
Higher mortgage rates, along with elevated sales prices and a lack of housing
inventory, have continued to impact market activity during the summer homebuying
season. The average 30-year fixed-rate mortgage has remained above 6.5% since
May, recently hitting a two-decade high in August, according to Freddie Mac. As a
result, existing-home sales have continued to slow nationwide, dropping 2.2%
month-over-month as of last measure, with sales down 16.6% compared to the
same time last year, according to the National Association of REALTORS® (NAR).
New Listings were down 4.7 percent to 1,477. Pending Sales decreased 8.2 percent
to 1,157. Inventory grew 11.3 percent to 2,160 units.
Prices were stable as Median Sales Price remained flat at $275,000. Days on Market
increased 50.0 percent to 33 days. Months Supply of Inventory was up 33.3 percent
to 2.0 months, indicating that supply increased relative to demand.
Falling home sales have done little to cool home prices, however, which have
continued to sit at record high levels nationally thanks to a limited supply of homes
for sale. According to NAR, there were 1.11 million homes for sale heading into
August, 14.6% fewer homes than the same period last year, for a 3.3 months’
supply at the current sales pace. The shortage of homes for sale has boosted
competition for available properties and is driving sales prices higher, with NAR
reporting a national median existing-home price of $406,700, a 1.9% increase from
a year earlier.
Information courtesy of CMLS*
