Higher mortgage rates, along with elevated sales prices and a lack of housing inventory, have continued to impact market activity during the summer homebuying season. The average 30-year fixed-rate mortgage has remained above 6.5% since May, recently hitting a two-decade high in August, according to Freddie Mac. As a result, existing home sales have continued to slow nationwide, dropping 2.2% month-over-month as of the last measure, with sales down 16.6% compared to the same time last year, according to the National Association of REALTORS® (NAR).
New Listings were up 5.4% for single-family homes but decreased 5.2% for Condo/TIC/Coop properties. Pending Sales decreased 15.5% for single-family homes and 11.6% for Condo/TIC/Coop properties.
The Median Sales Price was down 1.8% to $1,576,000 for single-family homes but increased 9.3% to $1,093,386 for Condo/TIC/Coop properties. Months' Supply of Inventory increased 33.3% for single-family units and 17.2% for Condo/TIC/Coop units.
Falling home sales have done little to cool home prices, however, which have continued to sit at record high levels nationally thanks to a limited supply of homes for sale. According to NAR, there were 1.11 million homes for sale heading into August, 14.6% fewer homes than the same period last year, for a 3.3 months’ supply at the current sales pace. The shortage of homes for sale has boosted competition for available properties and is driving sales prices higher, with NAR reporting a national median existing home price of $406,700, a 1.9% increase from a year earlier.
Contact Jack for additional insight and information. Jack Ryder | CA DRE 01922183 | [email protected] | +1415 867-4356 | W Real Estate