Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory. Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS®. Builders are working hard to ramp up production—the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper new home sales, despite high demand for additional supply.
- New Listings decreased 13.6 percent for Single Family homes and 8.3 percent for Townhouse/Condo homes.
- Pending Sales decreased 9.9 percent for Single Family homes and 9.7 percent for Townhouse/Condo homes.
- Inventory decreased 37.3 percent for Single Family homes and 57.8 percent for Townhouse/Condo homes.
- Median Sales Price increased 22.5 percent to $545,000 for Single Family homes and 14.3 percent to $240,000 for Townhouse/Condo homes.
- Median Time to Contract decreased 33.3 percent for Single Family homes and 62.2 percent for Townhouse/Condo homes.
- Months Supply of Inventory decreased 35.3 percent for Single Family homes and 64.1 percent for Townhouse/Condo homes.
Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record low.