The housing market update for February shows existing-homes are not selling the way they used to. The monthly inventory of unsold homes saw a slight increase, totaling around 870,000 units, which is equivalent to 1.7 months supply of existing homes. This marks a 7.2% drop in sales compared to January’s numbers and a 2.4% decrease in sales compared to last February. The current sales pace shows properties averaging 18 days on the market with 84% of homes sold in February being on the market for less than a month.
The adjusted annual rate fell to 6.02 million average home sales with first time home buyers making up 29% of home sales, investors and second home buyers at 19% and distress and foreclosures at 1%. We’ve seen home prices consistently increase over the past ten years to maintain the supply and demand equilibrium. Today, the supply of available homes is way below the demand for buyers. This year’s median existing- home price sits at $357,300, which is a 15% overall increase from last year’s $310,600 median price. This is a big issue for buyers who are also having to deal with rising mortgage rates.
Affordable housing continues to be a struggle in today’s market. With inflation and increasing interest rates, it’s no wonder a majority of consumers can’t save money to buy a home! The best thing you can do is talk to a lender you trust or message me and start a home buying game plan given your current situation.