Housing Market News for the Week of August 12, 2022

Home Listings Surge at Record Rate

The national inventory of homes for sale grew at a record pace for a third consecutive month in July, the latest sign that rising borrowing costs are starting to cool off the housing market.

The number of active listings in the U.S. soared 30.7% from the previous year, according to the latest Monthly Housing Trends report published on Tuesday by Realtor.com.

Read more from Fox Business.

Many Consumers Confused About Down Payments

Most buyers need far less than 20% down to buy a home!

More than 80% of would-be homebuyers said they are stressed about affording a down payment.

However, many are uneducated about what is necessary for a down payment. According to a recent Lending Tree survey, for those who have never been homeowners, 41% think a 20% down payment is a requirement to owning a home. That number drops slightly to 34% when you include consumers who have owned a property prior. Additionally, 21% said that a down payment is their only obstacle to obtaining homeownership. Around half of respondents said they don’t want to pay private mortgage insurance, so they are not willing to put less than 20% down. However, many consumers don’t know much about PMI at all. Around 60% said they don’t know how to get rid of PMI and 34% said they think it has something to do with reaching 20% in home equity, but are unsure if it automatically goes away or a refinance is necessary.

 Read more from the PA Association of Realtors.

Sellers’ Profits Hit Another Record High

Despite a slightly cooler housing market, sellers’ profits in the second quarter of 2022 reached 55.5%, a record high.

According to ATTOM’s 2022 U.S. Home Sales Report, sellers’ profits rose from 48.3% in the first quarter, up 7.2% in the second quarter. It marks the highest quarterly increase in at least 14 years. Additionally, it’s an increase of 12.6% year over year and an increase of more than 20% from the second quarter of 2020.

Read more from the PA Association of Realtors.

Yun: Possible Economic Downturn Likely to Be Mild

The country isn’t officially in a recession yet, despite two consecutive quarters of national contraction of the gross domestic product, a commonly cited indicator of an economic downturn, says Lawrence Yun, chief economist for the National Association of REALTORS®. And several healthy economic trends, including a robust job market, coupled with new efforts to boost affordable housing could stave off a more serious slump, Yun adds.

New guidance from the Treasury enabling state and local governments to use leftover emergency COVID-19 funding from the American Rescue Plan to create affordable housing should help ease the inventory crisis and counteract the effects of a tightening economy. Still, there are questions about whether the U.S. has entered “stagflation,” a period of high inflation combined with an economic slowdown, as many Americans feel the frustrating effects of a slower economy and higher consumer prices. But the National Bureau of Economic Research, the council that watches over U.S. business cycles, has yet to declare a recession, Yun notes.

Read more from NAR's Realtor Magazine.

Most Homeowners Plan to Age in Place

The majority of American homeowners are interested in retiring and aging in place.

According to the Finance of America Reverse’s 2022 Home Equity Loan Survey, 68% of homeowners are somewhat or very interested in retiring and staying in their current home. With so many planning on staying put, 67% reported they are planning to renovate/remodel parts of their home. Eighty-four percent of current homeowners said they plan to live in their current residence as long as they are able. Only about 30% said they are interested in downsizing and buying a smaller home, including about 25% of baby boomers.

Read more from the PA Association of Realtors.

National Foreclosures Up 153% Year Over Year

Foreclosure filings in the U.S. reached 164,581 in the first half of 2022.

According to ATTOM’s Midyear 2022 U.S. Foreclosure Market Report, that’s a 153% increase from the first half of 2021, but a 1% decrease from the first half of 2020. One in every 854 property units had a foreclosure filing in the first half of 2022, representing 0.12% of all housing. Foreclosure starts were also up year over year, rising 219%, and up 19% from 2020. More than 117,000 properties started the process in the first six months.

Read more from the PA Association of Realtors.

Pennsylvania Named One of the Best States for Beer Lovers

For clients who enjoy a good freshly brewed beer, tell them to head to – or remain in – the Keystone State.

Pennsylvania was recently named the fifth best state for beer lovers in the U.S. According to VinePair, the commonwealth has the second highest number of craft breweries in the U.S. at 486, behind only California. The site analyzed the number of craft breweries, the number of total breweries per 100,000, the number of barrels of craft beer produced, the total number of barrels of craft beer produced, the amount of state excise taxes levied upon beer, the number of beers currently ranked in the top 100 on Beer Advocate, the top 25 brewpubs, nano breweries, micro breweries, regional breweries and macro breweries as ranked by Untappd and the number beers currently ranked on VinePair’s 25 Most Important IPAs.

Read more from the PA Association of Realtors.

Mortgage Market Update

The 30-year fixed-rate rose slightly this week, a reminder that recent volatility remains persistent. Although rates continue to fluctuate, recent data suggest that the housing market is stabilizing as it transitions from the surge of activity during the pandemic to a more balanced market. Declines in purchase demand continue to diminish while supply remains fairly tight across most markets.


We hope you enjoyed this week's Market News. For more information about how we can help you, please contact us.

Plymouth Meeting Office: 610.834.8700

Doylestown Office: 215.345.7600

Ocean City, NJ Office: 609.398.8600



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Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.