A M. Appraisals Blog

The U.S. housing market has continued to cool, as rising mortgage rates and record- high sales prices have stifled affordability, weakening demand and pricing out a multitude of buyers. Nationally, median household income has failed to keep pace with increasing mortgage payments, with the costs of buying a home about 80% more expensive now than they were just three summers ago, according to the National Association of REALTORS® (NAR). As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand.

New Listings were down 16.2 percent to 1,621. Pending Sales decreased 14.5 percent to 1,306. Inventory grew 32.6 percent to 1,982 units.

Prices moved higher as Median Sales Price was up 20.0 percent to $274,818. Days on Market increased 23.5 percent to 21 days. Months Supply of Inventory was up 36.4 percent to 1.5 months, indicating that supply increased relative to demand.

At a time of year when homebuying activity is typically very strong, soaring homeownership costs have caused home sales to decline nationwide for the fifth consecutive month, with existing-home sales falling 5.4% month-to-month and 14.2% year-over-year as of last measure, according to NAR. But there is a bright spot. Inventory of existing homes has continued to climb this summer, with 1.26 million homes available at the beginning of July, equivalent to a 3 months’ supply. And despite the summer slowdown, homes are still selling quickly, with the typical home staying on market an average of 14 days.