Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% year over year as of the last measure, according to the National Association of REALTORS® (NAR). Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in demand has been particularly hard on homebuilders, causing new-home sales and construction to slow.
New Listings were down 13.7 percent for single-family homes and 20.4 percent for Condo/TIC/Coop properties. Pending Sales decreased 25.2 percent for single-family homes and 29.1 percent for Condo/TIC/Coop properties.
The Median Sales Price was down 12.0 percent to $1,625,000 for single-family homes and 14.1 percent to $987,500 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 5.9 percent for single-family units but was up 3.6 percent for Condo/TIC/Coop units.
Inflation, higher interest rates, and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.