Inventory Shrinkage Continues to Thwart Home Buyers
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.
• Single Family Closed Sales were down 27.4% to 5,565.
• Townhouse-Condo Closed Sales were down 28.3% to 1,933.
• Adult Communities Closed Sales were down 9.3% to 665.
• Single Family Median Sales Price increased 6.8% to $470,000.
• Townhouse-Condo Median Sales Price increased 9.7% to $340,000.
• Adult Communities Median Sales Price increased 8.4% to $325,000.
The US 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.