Housing affordability continues to be a major roadblock for market participants, with mortgage rates more than double compared to this time last year. Buyers are delaying home purchases in hopes rates will drop, while many sellers are holding off on listing their homes due to weakening buyer demand, unwilling to trade in their current lower rates for significantly higher borrowing costs on their next property. As a result, existing home and pending home sales have continued to slow as we move into winter.
New listings decreased by 13.5% for residential homes and 7.1% for townhouse/condo homes. Pending sales decreased by 31.3% for residential homes and 26.3% for townhouse/condo homes. Inventory increased 4.8% for residential homes but decreased by 15.9% for townhouse/condo homes.
Median Sales Price increased 4% to $260,000 for residential homes and 27.8% to $225,000 for townhouse/condo homes. Days on market increased 7.4% for residential homes but decreased 15.2% for townhouse/condo homes. Months supply of inventory increased 23.1% for residential homes but remained flat for townhouse/condo homes.
With home sales down, nationwide housing inventory was at 3.3 months’ supply heading into November, up from 2.4 months from this time last year, according to the National Association of REALTORS®. Although buyers have more options to choose from, home prices remain high, and soaring borrowing costs have caused monthly payments to increase significantly, with the average homebuyer paying 77% more on their loan per month compared to the same period a year ago, according to Realtor.com.