Home Sales Continue to Soften

By Helen Adams Realty - July 12, 2022

Canopy Realtor® Association Market Updates

Reprinted from June 2022 CRRA Monthly Indicators.

Rising inflation, soaring home prices, and increased mortgage interest rates have combined to cause a slowdown in the U.S. housing market. To help quell inflation, which reached 8.6% as of last measure in May, the Federal Reserve raised interest rates by three-quarters of a percentage point in June, the largest interest rate hike since 1994. Higher prices, coupled with 30-year fixed mortgage rates approaching 6%, have exacerbated affordability challenges and rapidly cooled demand, with home sales and mortgage applications falling sharply from a year ago.

New Listings were up in the Charlotte region by 4.1 percent to 6,509. Pending Sales decreased 12.3 percent to 4,710. Inventory grew 12.7 percent to 5,334.

Prices moved higher as Median Sales Price was up 19.4 percent to $400,000. Months Supply of Homes for Sale was up 10.0 percent to 1.1., indicating that supply increased relative to demand. With monthly mortgage payments up more than 50% compared to this time last year, the rising costs of homeownership have sidelined many prospective buyers.

Nationally, the median sales price of existing homes recently exceeded $400,000 for the first time ever, a 15% increase from the same period a year ago, according to the National Association of REALTORS®. As existing home sales continue to soften nationwide, housing supply is slowly improving, with inventory up for the second straight month. In time, price growth is expected to moderate as supply grows; for now, however, inventory remains low, and buyers are feeling the squeeze of higher prices all around.

A Closer Look