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Housing Market News for the Week of May 13, 2022

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Report: Housing Inventory Turnaround Is on the Horizon

Signs of a rebound are emerging in the number of house listings in the real estate market. The number of active listings recently posted the smallest annual decline since December 2019, a possible sign that a turnaround is taking root, according to®’s Monthly Housing Trends Report.

Read more from NAR's Realtor Magazine.

Homes Still Moving Quickly, But Market Shows Signs of Slight Slowdown

Is there some relief on the market for buyers?

According to a report from Redfin, about 12% of sellers dropped their listing price in the four weeks ending April 17. As mortgage rates have crept past 5%, some buyers are putting their search on hold until there is more inventory or prices take a break from historic highs. Pending sales fell 1.7% year over year, while listings dropped 8.2% and active listings decreased 20.9%. The report found that the median sale price reached $392,750 in the same time period, a 17% increase. Additionally, the average homebuyer’s monthly payments reached $2,318, an all-time high, and an increase of 37.8% year over year.

Read more from the PA Association of Realtors.

Nearly Half of US Homeowners Considered ‘Equity Rich’

As home prices continue to increase, homeowners are getting richer and richer. About 45% of mortgaged residential properties in the U.S. were considered “equity rich” in the first quarter, up from about 32% a year earlier, according to a new report from ATTOM Data Solutions. Equity rich means that the combined estimated amount of the loan balance on the home was no more than 50% of the home’s estimated market value.

“Homeowners continue to benefit from rising home prices,” says Rick Sharga, executive vice president of market intelligence for ATTOM. “Record levels of home equity provide financial security for millions of families and minimize the chance of another housing market crash like the one we saw in 2008. But these higher home prices and rising interest rates make it extremely challenging for first-time buyers to enter the market.”

Read more from NAR's Realtor Magazine.

ARM Demand Hits 14-Year High

More home buyers are reaching for the ARMs. Adjustable-rate mortgages generally offer a lower introductory mortgage rate that is locked in for five, seven, or 10 years before then adjusting.

As mortgage rates rapidly rise, some buyers may be getting priced out, unless they lock in an ARM, which may have an introductory rate closer to the level of fixed-rate mortgages when they started their house hunt.

Read more from NAR's Realtor Magazine.

Majority of Buyers Prepared to Make an Offer in Three Days or Less

Sixty-five percent of buyers said they were willing to make an offer within three days of viewing a home and 20% said they were prepared to make one immediately after viewing.

According to Bank of America’s 2022 Homebuyer Insights Report, most buyers know they have to act quickly. And they aren’t wrong.® found that homes are spending an average of 34 days on the market, down 15% year over year, while Redfin found that 65% of homes on the market in March had multiple bids.

Read more from the PA Association of Realtors.

52% of Homes Sold Above List Price in April

Competition abounds in the real estate market, and buyers are continuing to bid up home prices this spring. Fifty-two percent of homes sold above the list price in April, up from 45% in March and from 42% a year earlier, according to OJO Labs, a real estate technology company.

Homes in April sold for an average of $13,655 above the list price across metro areas, according to the OJO Lab analysis that tracked MLS sold data.

In San Francisco, 82% of homes sold above the list price and at an average of $190,921 higher. Denver had the second-most-competitive metro, with 70% of homes selling above the list price—$33,464 higher.

Read more from NAR's Realtor Magazine.

Mortgage Market Update

Homebuyers continue to show resilience even though rising mortgage rates are causing monthly payments to increase by about one-third as compared to a year ago. Several factors are contributing to this dynamic, including the large wave of first-time homebuyers looking to realize the dream of homeownership.


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.