January 2023
The US housing market began the year in a state of rebalance, with many buyers
and sellers remaining cautious while they wait to see where the market is headed.
Nationally, pending sales rose 2.5% month-to-month, marking the first increase
since May, while sales of existing homes fell 1.5% as of last measure, according to
the National Association of Realtors® (NAR). Demand for housing persists, but
higher mortgage interest rates have cut into housing affordability, with total home
sales down 17.8% last year compared to 2021.
New Listings were up 10.9 percent to 1,285. Pending Sales decreased 17.5 percent
to 1,012. Inventory grew 71.9 percent to 1,955 units.
Prices moved higher as Median Sales Price was up 4.2 percent to $250,000. Days
on Market increased 64.3 percent to 46 days. Months Supply of Inventory was up
112.5 percent to 1.7 months, indicating that supply increased relative to demand.
As sales slow, time on market is increasing, with the average home spending 26
days on market as of last measure, according to NAR. Seller concessions have
made a comeback, giving buyers more time and negotiating power when shopping
for a home. Although home prices remain high, mortgage rates declined steadily
throughout January, falling to their lowest level since September, sparking a recent
surge in mortgage demand. Lower rates should aid in affordability and may soon
lead to an uptick in market activity ahead of the spring selling season.
Information courtesy of CMLS*
