2022 Mid-Year Examination of the Housing Market
This year has turned out to be an interesting time for the housing market. From an increase in housing prices to a decrease in days on the market, the market has been tricky to predict, leaving many to question their path into homeownership.
The National Association of REALTORS® (NAR) releases monthly reports on the sales of existing homes and surveys of transactions during that month. This data gives a snapshot of market trends and what homebuyers and sellers can expect. Here you’ll find an examination of a few key findings and what this could mean for you.
House prices are higher
In June 2022, NAR reported that the median price for all existing homes was $416,000, making this the 124th consecutive month-to-month increase. Out of all the houses sold, 43 percent fell in the $250,000 to $500,000 range, with the next highest group being $500,000 to $750,000 at 20 percent.
What this means:
For homebuyers, it’s important to get prequalified and preapproved for a loan before you begin your housing search. This will give you an idea of the type of mortgage you can realistically afford, allowing you and your real estate agent to make the most of your search for your next home. For sellers, you’ll want to work with your agent to price your house according to the current housing market. This will help during the appraisal process, which determines whether or not your house is being sold at fair market value.
There are more houses on the market
As of June 2022, there were 1,260,000 properties listed for sale. This is a 9.6 percent increase from the previous month, combatting the growing concerns of a housing shortage. On average, there were 3.4 offers per home for sale, down from 4.2 the previous month. However, one reason for this increase in properties available comes from the decrease in total sales. Homes sold dropped by 5.4 percent from the previous month as more homes are sitting unsold due to the continuous rise in mortgage rates—ranging from 5.08 to 5.81 percent for a 30-year fixed rate mortgage—and housing prices overall.
What this means:
If you’re looking to buy this year, take advantage of the increase in houses on the market. There’s a little less competition for individual properties as buyers now have more options available to them. If you’re selling your home, work to make your home stand out from others. Stage it in a way that allows buyers to picture themselves in your home. Also work to increase your home’s curb appeal since this can help get more potential buyers through the door.
Houses are selling faster
In June, properties for sale remained on the market for an average of fourteen days, which is down from sixteen days in the previous month. Houses are selling faster this season, spending the fewest days on the market since NAR started tracking in 2011, and 88 percent of homes sold within the first month of listing.
What this means:
For homebuyers, don’t waste time when you’re searching for your home. Let your real estate agent know exactly what kind of property you want, and they’ll show you what they think fits best. View properties you’re interested in as soon as possible. Be sure to have your finances lined up so that when you find the right home, you can put in an offer that you’re able to back up. For sellers, it’s important to know that once your house is for sale, it’s likely that it will go faster than you thought. You’ll want to ensure that you are ready for a quick move by having your next property lined up, and ensure you can get all your belongings packed up and moved by closing day.
With the help of a skilled real estate agent, you shouldn’t be too concerned about navigating this current housing market. There are still plenty of opportunities to find your dream home or sell your home for a satisfactory price.