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.
• Single Family Closed Sales were down 35.0 percent to 3,681.
• Townhouse-Condo Closed Sales were down 39.6 percent to 1,194.
• Adult Communities Closed Sales were down 21.5 percent to 427.
• Single Family Median Sales Price increased 2.3 percent to $450,000.
• Townhouse-Condo Median Sales Price increased 2.5 percent to $330,000.
• Adult Communities Median Sales Price increased 8.8 percent to $310,000.
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