The U.S. housing market has continued to cool, as rising mortgage rates and
record-high sales prices have stifled affordability, weakening demand and
pricing out a multitude of buyers. Nationally, median household income has
failed to keep pace with increasing mortgage payments, with the costs of
buying a home about 80% more expensive now than they were just three
summers ago, according to the National Association of REALTORS® (NAR).
As more and more prospective buyers find their home purchase plans
delayed, many are turning to the rental market, where competition has
intensified due to increased demand.
Closed Sales decreased 11.5 percent for existing homes and 23.0 percent for
new homes. Pending Sales decreased 15.4 percent for existing homes and
25.6 percent for new homes. Inventory decreased 9.5 percent for existing
homes but increased 67.1 percent for new homes.
The Median Sales Price was up 8.0 percent to $285,000 for existing homes
and 18.1 percent to $525,450 for new homes. Days on Market remained flat
for existing homes but increased 12.7 percent for new homes. Supply
decreased 7.7 percent for existing homes but increased 100.0 percent for new
homes.
At a time of year when homebuying activity is typically very strong, soaring
homeownership costs have caused home sales to decline nationwide for the
fifth consecutive month, with existing-home sales falling 5.4% month-tomonth
and 14.2% year-over-year as of last measure, according to NAR. But
there is a bright spot. Inventory of existing homes has continued to climb this
summer, with 1.26 million homes available at the beginning of July, equivalent
to a 3 months’ supply. And despite the summer slowdown, homes are still
selling quickly, with the typical home staying on market an average of 14
days.
*Information and stats courtesy of KCRAR and Heartland MLS.