Housing Market News for the Week of July 22, 2022

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Housing Inventory Remains Robust Through June

While the housing market is experiencing some slowdown, home prices continue to reach record highs and inventory is not lasting long on the market.

Last month, the percentage of active listings rose 18.7% year over year, representing 98,000 more homes on the market, according to Realtor.com®. However, inventory is still below June 2022 levels by 34.1% and down 53.2% compared to June 2019. Newly listed homes increased 4.5% year over year. Home prices are still increasing; the median national home price for active listings hit $450,000 in June, a 16.9% increase year over year. However, there has been a decrease in smaller (1,750 square feet or less) homes listed, suggesting that the increase in price could be attributed to larger, pricier homes leading the rise in cost.

Existing Home Sales Decline

Existing home sales continued the streak of month-to-month declines in June, slipping for a fifth month, despite a May increase in pending home sales. Existing home sales were at a pace of 5.12 million, down 5.4% from May and 14.2% from one year ago. While home shoppers benefited from rising numbers of for-sale home options in May and June and a dip in mortgage rates in late May and early June that reduced financing costs, it wasn’t enough to offset higher monthly costs and concern about the overall economic outlook. June’s pace of home sales was not only notably lower than last year’s, it came in below the 5.3 million annual tally seen in both 2018 and 2019.

Prices Begin To Tumble From Their Record Peak

The median sale price for all U.S. homes came down 0.7% from its record-breaking peak in June, according to a new report from Redfin.

Sellers’ asking prices came down 3% from their May peak as the share of homes with price drops hit another new high. Home supply posted its first year-over-year increase since August 2019 as pending sales continued to slide. These changes are indicative that buyers are reaching their limit on costs — not just of homes and mortgages, but also food, transportation, and energy.

Bidding Wars Drop to Lowest Level in Over Two Years

Nationwide, 49.9% of home offers written by Redfin agents faced competition on a seasonally adjusted basis in June. That’s the lowest share since May 2020 and the first time the bidding-war rate has been below 50% since that same month, when the housing market was at a near standstill due to the onset of the coronavirus pandemic. June’s bidding-war rate compares with a revised rate of 65% one year earlier and 57.3% one month earlier, and marks the fifth-straight monthly decline.

6 Ways To Upgrade Your Outdoor Space for $250 or Less

The sun is out, which means you want to be out, too. If your outdoor space fails to live up to your fantasy of the perfect backyard oasis—but you don’t have the budget or time to sink into a complete overhaul—we’ve got your back.

As it turns out, there are a number of ways to instantly upgrade your deck, patio, or backyard for $250 or less. Some require a little creativity. But none of the following suggestions demands specialized tools or skills that the average homeowner doesn’t already have.

Mortgage Market Update

The housing market remains sluggish as mortgage rates inch up for a second consecutive week. Consumer concerns about rising rates, inflation and a potential recession are manifesting in softening demand. As a result of these factors, we expect house price appreciation to moderate noticeably.

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

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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.