Market Report - December 2022
2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
New Listings were down 16.2 percent to 336. Pending Sales decreased 32.0 percent to 283. Inventory grew 88.6 percent to 977 units.
Prices moved higher as Median Sales Price was up 11.4 percent to $507,093. Days on Market increased 49.1 percent to 167 days. Months Supply of Inventory was up 162.5 percent to 2.1 months, indicating that supply increased relative to demand.
Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.