U.S. sales of existing homes recently fell to a 13-year low, dropping 2.0%
month-over-month and 15.4% year-over-year as of last measure, according
to the National Association of REALTORS® (NAR), as surging interest rates
and elevated sales prices continue to make homeownership unaffordable for
many prospective buyers. Purchase activity is down significantly compared to
this time last year, but rising interest rates are also keeping many current
homeowners from selling, causing inventory to remain at historically low levels
nationwide.
Closed Sales decreased 10.8 percent for existing homes and 5.4 percent for
new homes. Pending Sales decreased 2.6 percent for existing homes but
increased 37.6 percent for new homes. Inventory decreased 12.3 percent for
existing homes and 10.5 percent for new homes.
The Median Sales Price was up 2.8 percent to $275,000 for existing homes
but decreased 8.0 percent to $529,225 for new homes. Days on Market
increased 8.7 percent for existing homes and 75.9 percent for new homes.
Supply increased 6.7 percent for existing homes but increased 1.7 percent for
new homes.
Total housing inventory going into October was at 1.13 million units, up 2.7%
from the previous month but down 8.1% compared to the same time last
year, for a 3.4 months’ supply at the current sales pace, according to NAR.
The shortage of homes for sale is making it harder for buyers to find a home
to purchase while at the same time pushing sales prices higher nationwide,
with the median existing-home sales price rising 2.8% annually to $394,300,
the third consecutive month of year-over-year price increases.
*Information and stats courtesy of KCRAR and Heartland MLS.