September 2022
The U.S. real estate market continues to slow as we move into fall, as rising
consumer prices and higher mortgage interest rates squeeze homebuyer budgets
and cool activity. With inflation showing little sign of abating, the Federal Reserve
implemented another 75-basis-point hike in September, marking the third such rate
increase this year. The cost of borrowing has reached multi-year highs on everything
from credit cards to auto loans in 2022 as mortgage interest rates topped 6% for the
first time since 2008, causing existing home sales to decline for the seventh
consecutive month.
New Listings were down 12.9 percent to 1,373. Pending Sales decreased 12.3
percent to 1,197. Inventory grew 39.2 percent to 2,109 units.
Prices moved higher as Median Sales Price was up 15.5 percent to $271,462. Days
on Market increased 42.1 percent to 27 days. Months Supply of Inventory was up
54.5 percent to 1.7 months, indicating that supply increased relative to demand.
Affordability challenges have priced many buyers out of the market this year, and
buyers who do succeed in purchasing a home are finding that the costs of
homeownership have increased significantly, with monthly mortgage payments
more than 55% higher than a year ago, according to the National Association of
REALTORS®. Inventory remains lower than normal, and as the market continue to
shift, experts project homes will begin to spend more days on market and price
growth will slow in the months ahead.
Information courtesy of CMLS*
