At the start of the year, the housing market showed no signs of slowing after two years of persistent price hikes and steady demand, but halfway through 2022, experts say that homebuying boom is giving way to a housing recession. Existing home sales fell by 5.9% from June to July and were down more than 20% year-over-year, CNBC reports.
As interest rates continue to surge well beyond 5%, a growing number of buyers are canceling contracts and waiting for affordability to improve, but prices are still rising across the country while inventory remains tight.
“We’re witnessing a housing recession in terms of declining home sales and home building,” Lawrence Yun, chief economist for the National Association of Realtors, said in a recent report.
At this point, however, it’s a different story for homeowners, buyers and sellers.
“It’s not a recession in home prices,” Yun added. “Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”
Advertisement
Related Stories
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency
