June 2022
Rising inflation, soaring home prices, and increased mortgage interest rates have
combined to cause a slowdown in the U.S. housing market. To help quell inflation,
which reached 8.6% as of last measure in May, the Federal Reserve raised interest
rates by three quarters of a percentage point in June, the largest interest rate hike
since 1994. Higher prices, coupled with 30-year fixed mortgage rates approaching
6%, have exacerbated affordability challenges and rapidly cooled demand, with
home sales and mortgage applications falling sharply from a year ago.
New Listings were up 11.0 percent to 1,956. Pending Sales increased 1.1 percent to
1,432. Inventory grew 40.3 percent to 1,764 units.
Prices moved higher as Median Sales Price was up 20.0 percent to $282,000. Days
on Market increased 10.0 percent to 22 days. Months Supply of Inventory was up
44.4 percent to 1.3 months, indicating that supply increased relative to demand.
With monthly mortgage payments up more than 50% compared to this time last
year, the rising costs of homeownership have sidelined many prospective buyers.
Nationally, the median sales price of existing homes recently exceeded $400,000 for
the first time ever, a 15% increase from the same period a year ago, according to
the National Association of REALTORS®. As existing home sales continue to soften
nationwide, housing supply is slowly improving, with inventory up for the second
straight month. In time, price growth is expected to moderate as supply grows; for
now, however, inventory remains low, and buyers are feeling the squeeze of higher
prices all around.
Information courtesy of CMLS*
