The most recent weekly housing report from Realtor.com states that sales of homes haven’t accelerated since last year nationwide. In their “Weekly Housing Trends View” article, says that even though the properties are still being sold at a higher rate, if current patterns continue, the time it takes for a house to sell on the market is probably going to increase.
But does it reflect what is actually happening?
According to the article, the prices of the houses have not diminished together with the changing situation of the market that affects the sellers of houses. Because of which “for the third consecutive week, fewer homeowners decided to put their homes up for sale”
As a result, growth in active for-sale inventory has slowed down but luckily for buyers, the amount of choices are increasing.
The article also referenced the Fed’s latest meeting, where another 75-basis point increase was announced, which decreased house demand. And in the near future, additional cooling in demand is anticipated.
According to the Realtors.com latest data, “The median listing price grew by 16.6% over last year.” But with softening demand and rising supply, it seems that the home price growth will continue to ease and slow-down in the second half of the year
Is the demand actually lessening?
Let’s talk now about what the latest Altos Research report.
The latest blog on Altos Research stated that there are currently 508,716 single-family homes for sale in the whole US and a weekly 3.6% increase. The inventory was increased by 6 to 8% every week a month ago but now, it stands at 3.6 or let’s say less than 4%
Comparing the data provided by NAR “Existing-home sales fell in June 2022, with declines in three out of four major U.S. regions month-over-month and down in all regions year-over-year.” Woah this is huge. 5.4% decrease month over month a 14.2% decrease year over year to be exact. Nationwide we are seeing here a huge indicator of a shift market.
Let me show you a very interesting breakdown of home sales by region. This graph by NAR shows the home sales divided by region. In which the maximum sales are in the South which is 44% and the lowest 13% in the North East.
Also, Altos.com shows that the median home price of a single-family in the US is $451,000 compared to the median price of new listings which dropped 12% from the previous week to $400,777 this is something to definitely keep an eye on.
While the data by NAR says that median home price INFOGRAPHIC nationwide increased 13.4% from one year ago to $416,000, a new record high nationwide. In addition to that, month supply of inventory nationwide increased to 3.0 months of inventory from 2.5 months in June.
Now let’s talk a little about the “First half US Foreclosure Activity” by year data by Attom Data. The First Half of 2022 U.S. Foreclosure Market Report shows there were a total of 164,581 U.S. properties with foreclosure filings. This is during the first six months of 2022. However, according to the ATTOM article and data “That figure is up 153 percent from the same time period a year ago but down just one percent from the same time period two years ago.”
And of course, as you can see in the graph, in 2010 the foreclosure activity was 1,654,634.
Moving on to the affordability chart given on Realtor.com. In their chart, they show what areas in the US are the most and least affordable in today’s market. Where the least affordable market is 0.29 and the most affordable is 1.12. At national level the affordability score is 0.62 according to the report.
If we break it down into different regions, in Florida, the Miami-Fort Lauderdale area has an affordability rate of 0.42 less than the national average. Tampa 0.48 less than the average. Similarly, in New York it’s 0.47 and in the Orlando-Kissimmee area it’s 0.48.
The least affordable according to this report, are San Diego with an affordability rate of 0.29 and Los Angeles with 0.31. The most affordable areas are Youngstown in Ohio, with 1.12 and Toledo with 1.10.
And we can’t forget the price reductions. Here is a graph from the Altos Research website showing the reduction in the house selling price. In 2018 the price reduction peaked at 37.2%. but now and so far, it’s at 33.3%.
Summing up all the data and articles, nationwide the data shows for the first time that properties are not selling fast like they use to a year ago, they are reporting some patterns and indicators of a shifting market like the one I just mentioned but also reporting that probably because of inflation, sellers are not selling meaning less increase of new inventory on the market.
From the data and graphs above, we saw the important recent drops in new listings price. But not yet indicative of big pricing weakness. And of course the weakened demand because of the increase of interest rates.
Definitely, so many things going on right now to keep our eyes on.
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