Even as interest rates rise and prices fall, the housing market remains robust
Vermont Business Magazine The latest housing data from RE/MAX for Burlington indicates that prices are up from last year, but have fallen over the past month. The current median home price is $410,000, up nearly 11% from a year ago but down 2.5% for the month.
The August 2022 National Housing Report found that home sellers, on average, accepted offers below their listing prices last month – a further indication of housing market rebalancing. Mortgage interest rates have doubled since the Fed’s first rate hike last March and three times since then to a total of 2.25%. Today, the 30-year fixed rate at the New England Federal Credit Union is 6.162%. According to Freddie Mac, the 30-year average rate was 2.96 in 2021 and has averaged 7.76% since 1971.
Key metrics for Burlington below:
- Median selling price of $410,000, up 10.8% YoY/down 2.5% on MOM
- 297 deals closed, down 17.7% YoY/up 29.1% YoY
- 257 new listings, down 3.4% YoY / up 5.3% in MOM
- 1.04% price ratio close to current price, up 1.6% YoY/down 1.6% MoM
- 21 days on market, down 16.5% YoY/up 19.7% MoM
- 0.9 months of inventory supply, down 12.1% YoY/down 23.4% MO
Turning to the national scene, Nick Bailey, President and CEO of RE/MAX, said, “Patient shoppers were rewarded in August as prices fell from July. Sales increased as buyers “buy the dip” – which was not the trend many people expected. Activity depleted inventory slightly, although the number of homes for sale remained significantly higher than in the same period a year ago. The burst of activity at the end of the summer highlights the resilience of the housing market. Despite rising interest rates and concerns about the economy, demand remains strong. We’ll see what happens from now on, but August’s sales surge was great news for the industry. »
According to August data from the RE/MAX National Housing Report, home sellers, on average, accepted offers below their listing prices last month – another indication of the rebalancing of the housing market. Across the 51 metro areas in the report, the average near-list price ratio in August was 99%, meaning homes sold for 1% less than asking price. That’s down from 101% in July and 104% in April. The change helped August sales rise 5.3% from July, while the median selling price fell 2.4% to $410,000 after peaking at $426,000 three months earlier. early.
At the same time, new listings fell 12.8% from July and inventories fell 1.8% after four months of double-digit growth. Even so, the number of homes for sale was 20% higher than in August 2021.
In two-thirds of 2022, home sales were down every month compared to 2021. Other notable metrics include:
• Month of inventory supply was 1.6 months in August, down from 1.7 in July but up from 1.2 in August 2021.
• Days on market averaged 28, four days more than July and three days more than August 2021.
• August’s median selling price of $410,000 was 2.4% lower than July, but was up 7% year over year.
Local market highlights and metrics for August include:
Of the 51 metro areas surveyed in August 2022, the number of newly listed homes decreased 12.8% from July 2022 and 13.1% from August 2021. Markets with the largest drop in percentage of new year-over-year listings were Dover, DE at -59.4%, Milwaukee, WI at -33.6%, and St. Louis, MO at -27.1%. Washington, DC, at +13.2%, Raleigh, North Carolina, at +10.7%, and New Orleans, LA, at +8.4%, lead the increase in the percentage of new registrations from one year to the next.
Of the 51 metropolitan areas surveyed in August 2022, the total number of home sales increased 5.3% from July 2022 and 20.1% from August 2021. The markets with the largest declines in percent of year-over-year sales were Bozeman, MT at -44.1%, Las Vegas, NV at -37.3%, and Phoenix, AZ at -31.4%. No metro area saw a year-over-year percentage increase in sales.
Median Sale Price – Median of prices of 51 metropolitan areas
In August 2022, the median selling price for the 51 metropolitan areas was $410,000, down 2.4% from July 2022 and up 7.0% from August 2021. Two metropolitan areas recorded a year-over-year decline in median selling price, San Francisco, CA at -4.2% and Honolulu, HI at -0.7%. Twenty metro areas grew year over year by double digit percentages, led by Fayetteville, AR at +20.4%, Tampa, FL at +19.4% and Orlando, FL at +17.5% .
Price ratio close to the list – Average of prices of 51 metropolitan areas
In August 2022, the average close-to-list price ratio of the 51 metropolitan areas in the report was 99%, down from 101% from July 2022 and from 102% from August 2021. The close-to-list price ratio is calculated by the average value of the sale price divided by the list price for each transaction. When the number is greater than 100%, the house has closed for more than the listed price. If it is less than 100%, the house sold for less than the list price. The metro areas with the lowest price ratio were Washington, DC at 84%, followed by a tie between Bozeman, MT and Coeur d’Alene, ID at 97%. The highest near-list price ratios were in Burlington, VT at 104%, followed by a tie between Hartford, CT and Manchester, NH at 103%.
Days on Market – Average of 51 metropolitan areas
The average days on market for homes sold in August 2022 was 28, up four days from the July 2022 average and three days from the August 2021 average. the lowest days in the market were Dover, DE at 10, Baltimore, MD at 11, followed by a two-way tie between Philadelphia, PA and Washington, DC at 13. The highest days on the averages for the market were in Fayetteville, AR at 63, followed by a tie between New York, NY and Seattle, WA at 47. Days on market is the number of days from when a home is first listed in an MLS and the signing of a sales contract.
Months of inventory supply – Average of 51 metropolitan areas
The number of homes for sale in August 2022 was down 1.8% from July 2022 and up 20.0% from August 2021. Based on the rate of home sales in August 2022, the monthly inventory supply decreased to 1.6 from 1.7 in July 2022. , and increased from 1.2 in August 2021. In August 2022, markets with inventory supply for the lower was a tie between Albuquerque, NM and Manchester, NH at 0.7, followed by another tie between Charlotte, NC and Hartford, CT at 0.8.
About the RE/MAX network
As one of the world’s leading real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in nearly 9,000 offices and a presence in more than 110 countries and territories. No one in the world sells more real estate than RE/MAX, as measured by residential transactions. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative entrepreneurial culture offering its agents and franchisees the flexibility to operate their business with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars each year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search real estate listings or find an agent in your community, please visit www.remax.com. For the latest news on RE/MAX, please visit news.remax.com.