Low inventory, elevated sales prices, and decades-high interest rates
continue to weigh on the housing market, causing sales of existing homes to
fall to their slowest pace since August 2010. According to the National
Association of REALTORS® (NAR), U.S. existing-home sales declined 4.1%
month-over-month and 14.6% year-over-year as of last measure, as
prospective buyers, faced with rising homeownership costs, wait for mortgage
rates, and home prices, to drop.
Closed Sales decreased 8.9 percent for existing homes and 14.9 percent for
new homes. Pending Sales decreased 0.7 percent for existing homes but
increased 34.4 percent for new homes. Inventory decreased 5.2 percent for
existing homes and 12.8 percent for new homes.
The Median Sales Price was up 7.9 percent to $277,250 for existing homes
and 0.5 percent to $537,538 for new homes. Days on Market increased 7.7
percent for existing homes and 57.1 percent for new homes. Supply increased
21.4 percent for existing homes but increased 4.8 percent for new homes.
Inventory remains at historically low levels nationwide, with only 1.15 million
homes for sale heading into November, a 5.7% decline compared to the same
time last year, for a 3.6 months’ supply at the current sales pace. The
shortage of available properties for sale has kept pressure on home prices,
which have continued to climb despite the slowdown in sales. According to
NAR, the U.S. median existing-home sales price increased 3.4% from a year
ago to $391,800, an all-time high for the month, with annual price gains
reported in all four regions of the country.
*Information and stats courtesy of KCRAR and Heartland MLS.