In an effort to attract buyers amid slowing traffic and declining home
sales, U.S. homebuilders have been increasingly reducing prices &
offering sales incentives this year. According to the National Association
of Home Builders, 36% of single-family homebuilders reported cutting
prices as of last measure, with an average price reduction of 6%.
Meanwhile, 59% of builders reported offering sales incentives, including
price discounts, paying closing costs or fees, and offering free upgrades
or price discounts, among others. For the 12-month period spanning
January 2022 - December 2022, Pending Sales in the CMLS region
were down 15.0 percent overall. The price range with the largest gain in
sales was the $300,001 & Above range, where they increased 12.6%.
2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market
activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over- year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers,
many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home.
New Listings were down 14.6 percent to 858. Pending Sales decreased 13.9 percent to 840. Inventory grew 38.2 percent to 1,843 units.