National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid-August. With fewer buyers able to afford the costs of homeownership, existing-home sales declined 0.7% month-over-month and were down 15.3% year-over-year, according to the National Association of REALTORS®(NAR).
New Listings were up 1.6% for single-family homes but decreased 2.6% for Condo/TIC/Coop properties. Pending Sales increased 0.5% for single-family homes but decreased 5.2% for Condo/TIC/Coop properties.
The Median Sales Price was down 4.1% to $1,582,500 for single-family homes and 9.5% to $1,050,000 for Condo/TIC/Coop properties. Months' Supply of Inventory increased 26.1% for single-family units and 37.8% for Condo/TIC/Coop units.
Prices have continued to increase this fall despite softening home sales nationwide, as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. Heading into September, only 1.1 million units were available for sale, 0.9% fewer than a month ago and 14.1% fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.