Across the nation, the average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of home ownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.
In Washtenaw County, New Listings decreased 11.9 percent for Single Family homes and 10.1 percent for Townhouse/Condo homes. Pending Sales increased 22.5 percent for Single Family homes and 25.4 percent for Townhouse/Condo homes. Inventory decreased 44.9 percent for Single Family homes and 50.0 percent for Townhouse/Condo homes. Median Sales Prices in Washtenaw County increased 12.4 percent to $422,500 for Single Family homes and 14.8 percent to $280,000 for Townhouse/Condo homes. Days on Market decreased 32.0 percent for Single Family homes and 52.8 percent for Townhouse/Condo homes. Months Supply of Inventory decreased 43.8 percent for Single Family homes and 52.2 percent for Townhouse/Condo homes.
Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.
Courtesy of the Ann Arbor Area Board of REALTORS.