Photo courtesy of Open Homes Photography
The average 30-year fixed-rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.
New Listings were down 38.7 percent for single-family homes and 26.4 percent for Condo/TIC/Coop properties. Pending Sales decreased 7.3 percent for single-family homes and 29.9 percent for Condo/TIC/Coop properties. The Median Sales Price was up 13.9 percent to $2,050,000 for single-family homes and 13.3 percent to $1,360,000 for Condo/TIC/Coop properties.
Months Supply of Inventory decreased 44.4 percent for single-family units and 27.1 percent for Condo/TIC/Coop units.
Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing-home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months' supply at present, and home prices continue to rise, with the median existing-home at $373,500, a 15% increase from last year. Homes are still selling quickly, however, and multiple offers are common in many markets.