National sales of existing homes recently fell to a 7-month low, as surging
borrowing costs, rising sales prices, and limited inventory continue to keep
many would-be buyers out of the market. Borrowers have become
increasingly sensitive to fluctuations in mortgage rates, which have remained
above 7% since mid-August. With fewer buyers able to afford the costs of
homeownership, existing-home sales declined 0.7% month-over-month and
were down 15.3% year-over-year, according to the National Association of
Closed Sales decreased 21.8 percent for existing homes and 5.9 percent for
new homes. Pending Sales decreased 7.8 percent for existing homes but
increased 30.3 percent for new homes. Inventory decreased 13.6 percent for
existing homes and 9.2 percent for new homes.
The Median Sales Price was up 0.5 percent to $276,500 for existing homes
but decreased 5.8 percent to $539,950 for new homes. Days on Market
increased 9.5 percent for existing homes and 172.2 percent for new homes.
Supply increased 6.7 percent for existing homes but remained flat for new
Prices have continued to increase this fall despite softening home sales
nationwide, as a lack of inventory has kept the market competitive for
prospective buyers, sparking bidding wars and causing homes to sell for
above asking price in some areas. Heading into September there were only
1.1 million units available for sale, 0.9% fewer than a month ago and 14.1%
fewer than the same period last year, according to NAR. As a result, the U.S.
median existing-home sales price rose 3.9% year-over-year to $407,100,
marking the third consecutive month that the median sales price topped
*Information and stats courtesy of KCRAR and Heartland MLS.