The markets are continuing to balance out following the buyer frenzy witnessed throughout the course of the pandemic. While buyer activity has slowed as mortgage rates rise and inventory remains low, impacting affordability, demand is still relatively strong and realtor.com® says we can expect “a more sustainable pace of activity,” according to their Weekly Housing Trends Report for the week ended Oct. 2.
Key findings:
– Median listing price increased 8.5% YoY
– Home prices increased by 8.5%-8.9% YoY in 12 of the last 13 weeks
– New listings decreased 4% YoY—declining in 7 of the last 8 weeks
– Active inventory continues to be down—decreasing 22% from a year ago for the seventh consecutive week
– Days on market decreased 8 days YoY
According to realtor.com®, this softening of new listings will have a major impact on home sales as strong demand is keeping buyers searching for their future home.
The takeaway:
“Last week’s data confirms that the U.S. housing market is in a holding pattern, at a relatively brisk level of activity. Key metrics like yearly inventory declines have seen little to no change for the past month-plus and home price growth continues to maintain a strong single-digit pace,” said Danielle Hale, chief economist for realtor.com®, in a statement.
“With the typically slower holiday season approaching, it’s unlikely that we’ll see a major shift in real estate activity levels before end-of-year,” she added. “But after months of the pandemic’s frenzied market, stability offers good news for buyers and sellers. Recent trends could indicate that the housing market is charting a relatively smooth transition from unsustainably high activity levels to a more manageable long-term growth pace heading into the new year.”
You can read the full Housing Trends report here.
