National sales of existing homes recently fell to a 7-month low, as surging borrowing costs, rising sales prices, and limited inventory continue to keep many would-be buyers out of the market. Borrowers have become increasingly sensitive to fluctuations in mortgage rates, which have remained above 7% since mid- August. With fewer buyers able to afford the costs of homeownership, existing- home sales declined 0.7% month-over-month and were down 15.3% year-over- year, according to the National Association of REALTORS®(NAR).
• Single Family Closed Sales were down 28.4 percent to 1,553.
• Townhouse-Condo Closed Sales were down 31.5 percent to 395.
• Adult Communities Closed Sales were down 21.5 percent to 51.
• Single Family Median Sales Price increased 9.5 percent to $575,000.
• Townhouse-Condo Median Sales Price increased 15.7 percent to $405,000.
• Adult Communities Median Sales Price increased 17.1 percent to $480,000.
Prices have continued to increase this fall despite softening home sales nationwide, as a lack of inventory has kept the market competitive for prospective buyers, sparking bidding wars and causing homes to sell for above asking price in some areas. Heading into September there were only 1.1 million units available for sale, 0.9% fewer than a month ago and 14.1% fewer than the same period last year, according to NAR. As a result, the U.S. median existing-home sales price rose 3.9% year-over-year to $407,100, marking the third consecutive month that the median sales price topped $400,000.
