More Homes Are Going on the Market
July 2022 saw the third consecutive month of home sale growth. This is just a sign that the housing market is starting to slow down due to rising rates.
It is reported that the number of active listings is up 30.7% from July 2021. This was part of the Monthly Housing Trends report from Realtor.com. The average rate on a 30-year fixed mortgage rate rose 6% this summer but has dipped some this fall.
“The U.S. housing market continues to move oward more evenly balanced supply and demand compared to the 2021 frenzy,” said Danielle Hale, the chief economist at Realtor.com. “Our July data shows elevated mortgage rates left many buyers tightening their budgets and sellers responding with price reductions, while home shoppers who kept searching saw more available options.”
The Federal Reserve is moving at the fastest pace seen in thirty years to tighted policy. The reason is to cool consumer demand and bring the housing market back under control. The policymakers are approving two back-to-back 75 basis point rates hikes. There will be another big increase depending on the upcoming economic data.
If you are looking to buy a home, choose a local Realtor who can help you with the rise in borrowing costs and home prices. Redfin has reported that the share of sale agreements on existing homes canceled was around 15% of the homes that went under contract. This has been the highest since we have seen pre-pandemic.
