The US housing market began the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the market is headed. Nationally, pending sales rose 2.5% month-to-month, marking the first increase since May, while sales of existing homes fell 1.5% as of last measure, according to the National Association of Realtors® (NAR). Demand for housing persists, but higher mortgage interest rates have cut into housing affordability, with total home sales down 17.8% last year compared to 2021.
New Listings decreased 45.2 percent for Single Family homes and 40.5 percent for Condominium homes. Pending Sales decreased 42.3 percent for Single Family homes and 47.3 percent for Condominium homes. Inventory increased 35.7 percent for Single Family homes and 39.3 percent for Condominium homes.
Median Sales Price increased 0.4 percent to $1,162,500 for Single Family homes but decreased 7.9 percent to $657,500 for Condominium homes. Days on Market decreased 0.8 percent for Single Family homes but increased 9.3 percent for Condominium homes. Months Supply of Inventory increased 110.5 percent for Single Family homes and 144.4 percent for Condominium homes.
As sales slow, time on market is increasing, with the average home spending 26 days on market as of last measure, according to NAR. Seller concessions have made a comeback, giving buyers more time and negotiating power when shopping for a home. Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand. Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.
All data from the REALTORS® Association of Maui, Inc. Report © 2022 ShowingTime.
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