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 the 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.
In St. Louis, new listings decreased by 12.7% for residential homes and 19.1% for townhouse/condo homes. Pending sales decreased by 19% for Residential homes and 7.8% for townhouse/condo homes. Inventory decreased 5.1% for residential homes and 37.4% for townhouse/condo homes.
Median sales price increased 10.5% to $285,000 for residential homes and 5.9% to $195,000 for townhouse/condo homes. Days on market decreased 13% for residential homes and 16% for townhouse/condo homes. Months’ supply of inventory increased by 6.7% for residential homes but decreased 33.3% for townhouse/condo 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.