In February 2022, existing home sales were down 2.4% from one year ago and down 7.2% from January. Supplies of listed but not-yet-sold homes totaled 870,000 units, up 2.4% from January, but remain 15.5% lower than a year ago (1.03 million.) The supply is 1.7 months at the current sales pace, up from 1.6 months on hand in January.
As interest rates cross the 4% threshold and prices continue rising, monthly house payments have risen by 28%, says NAR Chief Economist Lawrence Yun. The median existing-home sales price rose to $357,300, up 15.0% from a year ago ($310,600), marking 120 consecutive months of year-over-year price increases. This is the longest-running streak on record, according to NAR.
Rising interest rates are conflating with rising home prices, which is impacting new home construction and sales. With mortgage interest rates a full point higher than they were a year ago, applications to purchase a new home were down for the third consecutive month, hitting the lowest sales pace in seven months at 791,000 units. And the MBA Builder Application Survey showed that mortgage applications for new home purchases decreased 3.9% year-over-year in February 2022.
The good news is you may be able to get a proverbial foot in the door soon.