Real estate market
According to the National Association of REALTORS®, existing home sales up 6.7%. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. The U.S. real estate market remains hot ahead of the spring selling season.
Median Sales Price increased:
- 17.0 percent to $1,000,000 for Single Family homes
- 18.9 percent to $642,000 for Townhouse-Condo homes
Days on Market decreased:
- 29.6 percent for Single Family homes
- 46.9 percent for Townhouse-Condo homes
Months Supply of Inventory decreased :
- 33.3 percent for Single Family homes
- 33.3 percent for Townhouse-Condo homes
New Listings decreased:
- 21.1 percent for Single Family homes
- 14.0 percent for Townhouse-Condo homes
Pending Sales decreased :
- 40.4 percent for Single Family homes
- 45.5 percent for Townhouse-Condo homes
Current housing supply
An all-time low of 860,000 as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current housing supply is concentrated at the upper end of the market. Where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets. It’s no surprise sales prices continue to soar.
Inventory decreased
- 32.3 percent for Single Family homes
- 26.5 percent for Townhouse-Condo homes
Mortgage rates
Interest rates for mortgage have increased almost a full percentage point since December. The average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.
The Federal Reserve raising short-term rates and signaling further increases means mortgage rates should continue to rise over the course of the year. While home purchase demand has moderated, it remains competitive due to low existing inventory, suggesting high house price pressures will continue during the spring homebuying season.
Sources:
https://www.car.org/en/marketdata/interactive/housingmarketoverview
https://www.nar.realtor/research-and-statistics/housing-statistics
https://www.freddiemac.com/pmms
