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, according to a news release by the Northwest Ohio Realtors, Maumee.
Nationally, median household income has failed to keep pace with increasing mortgage payments, with the cost of buying a home about 80% more expensive now than they were just three summers ago, according to the National Association of Realtors. 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-home production is slowing, as soaring costs and declining housing affordability have caused builder confidence to plummet to its lowest level since April 2020. As material costs, interest rates and home prices continue to surge – the median sales price of a new single-family home was north of $400,000. Builders are becoming increasingly cautious about the future of new home sales, with the commerce department reporting that sales of new single-family homes, housing starts, and permits recently dropped to a two-year low.
For the 12-month period spanning August 2021 through July 2022, Pending sales in Northwest Ohio were down .9% overall. The price range with the largest gain in sales was the $150,000 to $200,000 range, where they increased 4.3%.
For July, new listings decreased 11.3% for single family homes and decreased 5.1% for condo-villa homes compared to July 2021. Median sales price increased 7.1% to $180,000 for single family homes and increased 0.5% to $211,000 for condo-villa homes. Months supply of inventory for single family homes remained unchanged at four months and decreased 33.3% to two months for condo-villa homes compare to the same time period last year.
Despite the summer slowdown, homes are still selling quickly, with the typical home staying on the market an average of 52 days.