The US housing market began the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the market is headed. Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of Realtors® (NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.
New Listings were down 28.5% for single-family homes and 28.6% for Condo/TIC/Coop properties. Pending Sales decreased 33.1% for single-family homes and 40.6% for Condo/TIC/Coop properties.
The Median Sales Price was down 16% to $1,370,000 for single-family homes and 6.5% to $1,000,000 for Condo/TIC/Coop properties. Months' Supply of Inventory increased 20% for single-family units but remained flat for Condo/TIC/Coop units.
As sales slow, time on market is increasing, with the average home spending 26 days on-market as of last measure, according to NAR. Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.