Higher mortgage rates, along with elevated sales prices and a lack of housing inventory, have continued to impact market activity during the summer homebuying season. The average 30-year fixed-rate mortgage has remained above 6.5% since May, recently hitting a two-decade high in August, according to Freddie Mac. As a result, existing-home sales have continued to slow nationwide, dropping 2.2% month-over-month as of last measure, with sales down 16.6% compared to the same time last year, according to the National Association of REALTORS® (NAR).
New Listings decreased 49.1 percent for Single Family homes and 31.4 percent for Condominium homes. Pending Sales increased 1.6 percent for Single Family homes but decreased 37.1 percent for Condominium homes. Inventory decreased 31.5 percent for Single Family homes and 12.1 percent for Condominium homes.
Median Sales Price increased 21.7 percent to $1,197,500 for Single Family homes but decreased 4.3 percent to $773,750 for Condominium homes. Days on Market decreased 16.8 percent for Single Family homes but increased 36.7 percent for Condominium homes. Months Supply of Inventory decreased 5.7 percent for Single Family homes but increased 56.3 percent for Condominium homes.
Falling home sales have done little to cool home prices, however, which have continued to sit at record high levels nationally thanks to a limited supply of homes for sale. According to NAR, there were 1.11 million homes for sale heading into August, 14.6% fewer homes than the same period last year, for a 3.3 months’ supply at the current sales pace. The shortage of homes for sale has boosted competition for available properties and is driving sales prices higher, with NAR reporting a national median existing home price of $406,700, a 1.9% increase from a year earlier.
All data from the REALTORS® Association of Maui, Inc. Report © 2023 ShowingTime.
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