The State of the Market

The real estate market has always been something of an enigma. To the layman, it may seem as simple as just buying a house you like, but when you really start digging, you realize just how vast and complicated it really is. Even to the experts, real estate on a “good day” is confusing. Throw a worldwide pandemic into the mix and it’s even harder to grasp for the everyday person. To cut through some of the murkiness, here’s a general state of the market. 

Prices

Home prices are still going up and up. As we mentioned a few days ago, the new median home price nationwide hit a record setting $450,000. For the week of July 16, home prices were up nearly 17% compared to the same week in 2021. That marks 31 weeks straight of double-digit price growth. 

Actual Listings

The recent spike in mortgage rates by the Fed is having its intended effect. The goal was to slow the market in an attempt to curb inflation. In doing so, the number of home listings has slowed. In its second straight week of declines, home listings are down 3%. Essentially, we may have reached a point in the market where sellers might be afraid they missed the boat but this shouldn’t discourage a seller from listing their home…

Sales 

… because people still want to buy homes. Despite the rise in rates and because of the dip in inventory, home sales have ticked up every so slightly. For the week ending July 16, homes are spending one less day on the market compared to this same week last year. Instead of 33 days on market, homes are selling in an average of 32 days.