The U.S. real estate market continues to slow as we move into fall, as rising
consumer prices and higher mortgage interest rates squeeze homebuyer
budgets and cool activity. With inflation showing little sign of abating, the
Federal Reserve implemented another 75-basis-point hike in September,
marking the third such rate increase this year. The cost of borrowing has
reached multi-year highs on everything from credit cards to auto loans in 2022
as mortgage interest rates topped 6% for the first time since 2008, causing
existing home sales to decline for the seventh consecutive month.
Closed Sales decreased 18.5 percent for existing homes and 18.4 percent for
new homes. Pending Sales decreased 20.0 percent for existing homes and
25.9 percent for new homes. Inventory decreased 3.8 percent for existing
homes but increased 58.1 percent for new homes.
The Median Sales Price was up 10.0 percent to $275,000 for existing homes
and 22.2 percent to $573,006 for new homes. Days on Market increased 23.5
percent for existing homes but decreased 3.4 percent for new homes. Supply
remained flat for existing homes but increased 86.2 percent for new homes.
Affordability challenges have priced many buyers out of the market this year,
and buyers who do succeed in purchasing a home are finding that the costs
of homeownership have increased significantly, with monthly mortgage
payments more than 55% higher than a year ago, according to the National
Association of REALTORS®. Inventory remains lower than normal, and as the
market continue to shift, experts project homes will begin to spend more days
on market and price growth will slow in the months ahead.
*Information and stats courtesy of KCRAR and Heartland MLS.