The U.S. real estate market continues to slow as we move into fall, as rising 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 increases 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.
- Single Family Closed Sales were down 11.1 percent to 2,159.
- Townhouse-Condo Closed Sales were down 3.9 percent to 573.
- Adult Communities Closed Sales were down 5.8 percent to 65.
- Single Family Median Sales Price increased 5.0 percent to $525,000.
- Townhouse-Condo Median Sales Price increased 9.4 percent to $350,000.
- Adult Communities Median Sales Price decreased 5.7 percent to $410,000.
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 continue to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead.