The U.S. housing market has continued to cool, as rising mortgage rates and record-high sales prices have stifled affordability, weakening demand and pricing out a multitude of buyers. Nationally, median household income has failed to keep pace with increasing mortgage payments, with the costs of buying a home about 80% more expensive now than they were just three summers ago, according to the National Association of REALTORS® (NAR). As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand.
New Listings in Washtenaw County decreased 15.4 percent for Single Family homes and 18.7 percent for Townhouse/Condo homes. Pending Sales increased 34.4 percent for Single Family homes and 23.7 percent for Townhouse/Condo homes. Inventory decreased 33.8 percent for Single Family homes and 45.3 percent for Townhouse/Condo homes.
Washtenaw County, Median Sales Price increased 7.2 percent to $410,000 for Single Family homes and 18.4 percent to $290,000 for Townhouse/Condo homes. Days on Market remained flat for Single Family homes but decreased 12.5 percent for Townhouse/Condo properties.
Months Supply of Inventory decreased 26.1 percent for Single Family homes and 44.8 percent for Townhouse/Condo homes. At a time of year when homebuying activity is typically very strong, soaring homeownership costs have caused home sales to decline nationwide for the fifth consecutive month, with existing-home sales falling 5.4% month to-month and 14.2% year-over-year as of last measure, according to NAR.
But there is a bright spot. Inventory of existing homes has continued to climb this summer, with 1.26 million homes available at the beginning of July, equivalent to a 3 months’ supply. And despite the summer slowdown, homes are still selling quickly, with the typical home staying on market an average of 14 days.
Courtesy of the Ann Arbor Area Board of REALTORS