The Truth About Our Housing Market
Here’s what you need to know to navigate our changing market.
What’s really happening in our market? Some media outlets say that prices will crash soon and mortgage demand is at an all-time low. Meanwhile, many Realtors post about record-breaking sales and homes selling in just a few days. So who’s right? Let’s take a look at the latest numbers and find out.
Since the beginning of 2022, more homes have come onto the market. In the first half of this year, our area had 3,000 homes listed for sale, which is a 6% increase from last year. However, we saw a 3% decrease in homes listed for sale in June.
Experts agree that prices won’t increase as quickly as they were before.
Meanwhile, we saw 2,560 home sales in the first half of 2022, which is a 1.9% year-over-year increase. In June 2022, there was a 10% year-over-year decrease in home sales. Just 471 homes sold that month compared to 524 in 2021. That’s the largest decrease we’ve seen since the pandemic. Last month, we had a 1.1 month’s supply of homes, which is the first time we’ve had more than one month of inventory for a long time.
So our market started strong at the beginning of the year, but things are starting to slow down. The main factor driving our changing market is our increasing interest rates. As of writing this blog post, rates are around 5.7%, but they were even higher just a week ago. This increase is severely affecting buyers’ purchasing power. The market is starting to cool down as a result.
So what does the future of our market look like? I don’t have a crystal ball, so I can’t say for sure. However, many experts agree that prices won’t increase as quickly as they did before. The average sales price in June was $235,000, which is higher than it was on average in quarter two. So despite our slowing market, prices are remaining steady.
If you have questions about today’s market update or anything else, please call or email me. I am always willing to help!