Existing home sales declined nationwide for the eighth consecutive month, falling 1.5% as of the last measure, according to the National Association of REALTORS® (NAR), with sales down nearly 24% from the same period last year. Pending home sales also declined, dropping 10.9% month-to-month, exceeding economists’ expectations. Stubbornly high inflation and soaring borrowing costs have eroded buyer purchasing power and have caused the market to cool rapidly this year.

New listings decreased by 16.6% for residential homes and 13% for townhouse/condo homes. Pending sales decreased by 21.4% for residential homes and 22.6% for townhouse/condo homes. Inventory decreased by 6.1% for residential homes and 29.9% for townhouse/condo homes.

Median sales price increased 6% to $265,000 for residential homes and 2.6% to $195,000 for townhouse/condo homes. Days on market decreased by 7.1% for residential homes and 16.1% for townhouse/condo homes. Months supply of inventory increased by 6.7% for residential homes but decreased by 23.5% for townhouse/condo homes.

The U.S. housing market is undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers. Mortgage rates have doubled since March, and home prices remain elevated due to a limited supply of homes, although price gains are slowing quickly. As a result, many homeowners are waiting until market conditions improve to sell their homes, while other sellers are increasingly cutting prices and offering concessions to attract a greater number of buyers.