Watch this quick video with Sarah Montgomery to learn about how the housing market changed in May and how that could affect the value of your home.
After two years of record-setting activity, there are signs the housing market might be cooling. High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring homeownership costs. The National Association of REALTORS® (NAR) reports existing home sales were down 2.4% from the previous month, while pending sales fell 3.9% as of last measure, extending the trend of recent months. Economists predict sales will continue to soften in the near future, which may put downward pressure on home prices.
Closed Sales increased 1.4 percent for existing homes and 0.3 percent for new homes. Pending Sales decreased 5.7 percent for existing homes and 13.3 percent for new homes. Inventory decreased 16.2 percent for existing homes but increased 31.8 percent for new homes. The Median Sales Price was up 11.8 percent to $285,000 for existing homes and 12.5 percent to $494,900 for new homes. Days on Market decreased 7.1 percent for existing homes and 11.6 percent for new homes. Supply decreased 20.0 percent for existing homes but increased 60.0 percent for new homes.
The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8% from the previous month according to NAR, although supply remains down 10.4% compared to this time last year, with only 2.2 months’ supply of homes at the current sales pace. As the nation continues to explore ways to solve the ongoing housing shortage, estimated at 5.5 million homes, the Biden administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation’s housing crisis over the next 5 years.
Interested in how this market may impact your home search or the value of your current home? Give us a call at 816-321-0120. Want to know how much your current home is worth? Get your home valued by a professional.