The U.S. housing market began the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the market is headed. Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of Realtors® (NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.
New listings decreased 17.3% for residential homes and 25.6% for townhouse/condo homes. Pending sales decreased 13.5% for residential homes and 22.9% for townhouse/condo homes. Inventory increased two percent for residential homes but decreased 16.2% for townhouse/condo homes.
Median sales price increased 0.2% to $241,250 for residential homes and 11.7% to $208,000 for townhouse/condo homes. Days on Market increased 27.3% for residential homes but decreased five percent for townhouse/condo homes. Months supply of inventory increased 20% for residential homes but remained flat for townhouse/condo homes.
As sales slow, time on market is increasing, with the average home spending 26 days on market as of last measure, according to NAR. Seller concessions have made a comeback, giving buyers more time, and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.
December 2022 Housing Report
