The U.S. Housing Market is Shifting
Reprinted from October 2022 CRRA Monthly Indicators
Existing home sales declined nationwide for the eighth consecutive month, falling 1.5% as of last measure, according to the National Association of REALTORS® (NAR), with sales down nearly 24% from the same period last year. Pending home sales also declined, dropping 10.9% month-to-month, exceeding economists’ expectations. Stubbornly high inflation and soaring borrowing costs have eroded buyer purchasing power and have caused the market to cool rapidly this year.
New Listings were down in the Charlotte region by 23.0 percent to 4,224. Pending Sales decreased 33.9 percent to 3,369. Inventory grew 42.1 percent to 7,511.
Prices moved higher as Median Sales Price was up 13.3 percent to $379,450. Months Supply of Homes for Sale was up 63.6 percent to 1.8., indicating that supply increased relative to demand.
The U.S. housing market is undergoing a major shift, and affordability continues to be an obstacle for buyers and sellers. Mortgage rates have doubled since March, and home prices remain elevated due to a limited supply of homes, although price gains are slowing at a quickening pace. As a result, many homeowners are waiting until market conditions improve to sell their homes, while other sellers are increasingly cutting prices and offering concessions to attract a greater number of buyers.
A Closer Look
Monthly Average 30-Year Fixed-Rate Mortgage Rates
Residential Closings & Average Sales Price for the entire CMLS Area
A Look at Charlotte's Overall Real Estate Market