Homes are Selling More Slowly But More Buyers Start Searching in the New Year

The typical home is taking longer to sell but online home searches and tour requests are ticking up.

The typical home is taking longer to sell and pending sales are at a record low, but online home searches and tour requests are ticking up. Those early signs of demand could translate into sales–especially as mortgage rates fall from their peak and inflation cools. 

Read more from Redfin.

Typical Monthly Payment Is Nearly $300 Less Than October Peak, Bringing Some Homebuyers Back

The typical U.S. home sold for roughly $352,000 during the four weeks ending December 18, down 10% from a peak of $391,000 in June and up just 1% year over year. Average mortgage rates declined for the sixth straight week to 6.27%, cutting nearly $300 from the typical homebuyers’ monthly housing payment since it hit a peak in late October with 7% rates. The typical for-sale home was listed for 39 days before going under contract, the longest period since August 2020, contributing to the biggest supply increase on record. 

Read more from Redfin.

More Than 19 Million Renters Burdened by Housing Costs

More than 40% of renters reported spending more than 30% of their income on rent between 2017 and 2021.

The Department of Housing and Urban Development describes affordable housing as spending “no more than 30% of gross income for housing costs, including utilities.” The U.S. Census reported that 19 million renter households are considered burdened by their housing costs, spending at least 30%, if not more, on their housing. The report found that 7.6% of counties, with around one-third of total renters in the U.S., had a median housing cost ratio for renters above 30%. In less than 1% of counties, homeowners who have a mortgage had a median housing cost ratio above that of renters.

Read more from the PA Association of Realtors.

National Association of Realtors Chief Economist Reacts to Latest Inflation News

“Inflation has been coming down. Mortgage rates will also, therefore, come down. The latest consumer price index of 6.45% in December is in the sixth consecutive month of deceleration after peak inflation of 9.1% in June 2022. Housing inflation due to rising rents is the one major item still showing acceleration but is soon expected to come down as well. Rents increased by 8.35% in December, its highest reading in more than 40 years. Private sector data in recent months have been pointing to near-zero rent growth in some major cities, and robust apartment construction will raise rental vacancy rates..."

Read more from The National Association of Realtors.

Five Reasons Working with a Realtor Can Ensure You’ll Get the Most Out of Your Sale

Here are five reasons working with a professional can ensure you’ll get the most out of your sale.

1. A Real Estate Advisor Is an Expert on Market Trends

Leslie Rouda Smith, 2022 President of the National Association of Realtors (NAR), explains:

“During challenging and changing market conditions, one thing that’s calming and constant is the assurance that comes from a Realtor® being in your corner through every step of the home transaction. Consumers can rely on Realtors®’ unmatched work ethic, trusted guidance and objectivity to help manage the complexities associated with the home buying and selling process.”

Read more from Keeping Current Matters.

Philadelphia Region Market Summary

December 2022

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

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.