The U.S. real estate market continues to slow as we move into fall, as rising Closed Sales consumer prices and higher mortgage interest rates squeeze homebuyer budgets and cool activity. With inflation showing little sign of abating, the Federal Reserve implemented another 75-basis-point hike in September, marking the third such rate increase this year. The cost of borrowing has reached multi-year highs on everything from credit cards to auto loans in 2022 as mortgage interest rates topped 6% for the first time since 2008, causing existing home sales to decline for the seventh consecutive month.
New Listings were down 19.1 percent for single-family homes and 25.4 percent for condominium properties. Closed Sales decreased 20.7 percent for single family homes and 19.5 percent for condominium properties. The Median Sales Price was up 7.9 percent to $675,000 for single-family homes and 35.1 percent to $545,000 for condominium properties. Months Supply of Inventory increased 31.3 percent for single-family units and 5.9 percent for condominium units.
Affordability challenges have priced many buyers out of the market this year, and buyers who do succeed in purchasing a home are finding that the costs of homeownership have increased significantly, with monthly mortgage payments more than 55% higher than a year ago, according to the National Association of REALTORS®. Inventory remains lower than normal, and as the market continues to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead.
Nichole Willey & Team are your local real estate experts on Cape Cod & the South Shore! Whether you are looking to buy, sell, invest, or rent- we have a team of passionate, local professionals waiting to help make your real estate goals a reality. Contact us today!