Market Report - 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 22.0 percent to 474. Pending Sales decreased 33.4 percent to 384. Inventory grew 25.7 percent to 938 units.
Prices moved higher as Median Sales Price was up 15.0 percent to $453,060. Days on Market increased 37.4 percent to 125 days. Months Supply of Inventory was up 63.6 percent to 1.8 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 continues to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead.