Home price growth cooled to the single digits for the first time in a year as both buyers and sellers continued to pull back from the market.
The typical home cost $400,000, an annual increase of 8.4%, according to Realtor.com’s Monthly Housing Trends Report.
While price appreciation remains elevated, it’s far lower now than its peak of 18% YOY earlier this year.
The number of homes for sale was up 74.6% YOY, with 49 of the 50 largest metros seeing their inventory increase.
That metric remained 38% lower than the December 2017-2019 average, however. Newly listed homes and pending listings both declined YOY.
Home sellers who are locked into low interest rates are hesitant to take on a more expensive mortgage. The typical monthly payment is now $750 higher than at the same time last year.
“Despite significant cooling in sales in 2022, some indicators remain in high gear. Prices are still significantly higher and homes are selling faster compared to 2019 pre-pandemic levels,” said Danielle Hale, Chief Economist for Realtor.com.
“[M]oderation in home price growth may encourage more buyers to return to the market in the months ahead, and may also be welcome news for sellers aiming to sell and buy at the same time.”
The boost in inventory bodes well for prospective buyers waiting for prices to drop.
The typical home spent 67 days on the market, 11 days longer than last year. Buyers are moving cautiously and taking advantage of seller concessions, looking for the best deal.
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