Significant Shift In The Market
June saw a significant shift in the real estate market after policymakers approved the biggest interest rate hike in 28 years.
With higher interest rates on top of record high prices, affordability has become a real concern as prospective monthly payments have increased sharply.
This shift has contributed to a cooling in the market as many buyers have decided to delay purchasing a home.
The number of closings were down 20% compared to this time last year and down 7.5% compared to last month.
Pending homes also saw a significant drop as 22% less homes went under contract compared to this time last year. Indications are that this trend will continue into July, 2022.
Home prices dipped some in May but have leveled off in June. The Median home price was $615,000 in June and overall home prices are were up 13% compared to this time last year.
As the summer selling season continues on, new listings remain steady. The number of available homes rose to a 5 week supply bringing much more opportunities for potential buyers.