Existing home sales declined nationwide for the eighth consecutive month, falling 1.5% as of last measure, according to the National Association of REALTORS® (NAR), with sales down nearly 24% from the same period last year. Pending home sales also declined, dropping 10.9% month-to-month, exceeding economists’ expectations. Stubbornly high inflation and soaring borrowing costs have eroded buyer purchasing power and have caused the market to cool rapidly this year.
New Listings were down 27.3% for single-family homes and 27.8% for Condo/TIC/Coop properties. Pending Sales decreased 24.9% for single-family homes and 37.5% for Condo/TIC/Coop properties.
The Median Sales Price was down 7.2% to $1,675,000 for single-family homes and 3.8% to $1,200,000 for Condo/TIC/Coop properties. Month's Supply of Inventory increased 15.8% for single-family units and 5.7% for Condo/TIC/Coop units.
The U.S. housing market is undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers. Mortgage rates have doubled since March, and home prices remain elevated due to a limited supply of homes, although price gains are slowing at a quickening pace. As a result, many homeowners are waiting until market conditions improve to sell their home, while other sellers are increasingly cutting prices and offering concessions to attract a greater number of buyers.