Summer 2022 has been a season of change for the U.S. real estate market.
With housing affordability at a 33-year low, existing-home sales have
continued to soften nationwide, falling 5.9% month-to-month and 20.9% year-over-
year as of last measure, according to the National Association of
REALTORS® (NAR). Pending home sales have also continued to decline,
while new listings have steadily increased, with unsold inventory reaching 3.3
months’ supply at the start of August. The pullback in demand has been
particularly hard on homebuilders, causing new-home sales and construction
to slow.
Closed Sales decreased 15.0 percent for existing homes and 7.6 percent for
new homes. Pending Sales decreased 15.0 percent for existing homes and
4.1 percent for new homes. Inventory decreased 12.6 percent for existing
homes but increased 57.4 percent for new homes.
The Median Sales Price was up 9.2 percent to $278,200 for existing homes
and 22.1 percent to $539,155 for new homes. Days on Market increased 13.3
percent for existing homes and 15.8 percent for new homes. Supply
decreased 15.4 percent for existing homes but increased 85.2 percent for new
homes.
Inflation, higher interest rates, and fears of a potential recession have taken a
toll on buyers and sellers this summer, leading many people to stay on the
sidelines to see what will happen with the market. But some experts, including
NAR Chief Economist Lawrence Yun, believe the worst of inflation may be
over. Although sales prices remain up from this time last year, price growth is
expected to moderate in the months ahead as the market continues to shift in
a more buyer-friendly direction.
*Information and stats courtesy of KCRAR and Heartland MLS.