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 increased 3.7 percent for single-family homes but decreased 18.6percent for townhouse-condo properties. Pending Sales decreased 3.4 percent or single-family homes and 8.3 percent for townhouse-condo properties. Inventory decreased 16.6 percent for single-family homes and 23.6 percent for townhouse-condo properties.
The Median Sales Price was up 8.9 percent to $430,000 for single-family homes and 21.6 percent to $348,000 for townhouse-condo properties. Days on Market decreased 25.0 percent for single-family homes but increased 23.5 percent for townhouse-condo properties. Months Supply of Inventory decreased 5.9 percent for single-family homes and 22.2 percent for townhouse-condo properties.
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.
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