The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7%. Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.
Compared with last February:
- New Listings: Decreased 11.8%
- Pending Sales: Decreased 4.4%
- Inventory: Decreased 45.9%
- Median Sales Price: Increased 22% to $360,000
- Months Supply of Homes for Sale: Decreased 44.4%
Inventory was at an all-time low as February began. According to Lawrence Yun, Chief Economist at the National Association of REALTORS®, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.
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Source: Canopy Realtor Association