The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year. As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.
Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®. Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.
The Bottom line:
Affordability is restricting purchasing activity, and early indications show that competition for homes is cooling down. Inventory is still low and housing prices continue to rise. However, homes continue to sell rapidly, and multiple offers are common in many markets.
Let’s take a look at some of the numbers from April 2022
April 2022 Omaha Area Real Estate Statistics
Average Sold Price: $327,170 (Up 16.2% from April 2021) Homes Sold: 1,174 (Down 2.4% from April 2021) New Listings: 1,909 (Down 9.8% from April 2021) Pending Listings: 1,545 (Down 10.2% from April 2021) Days on the Market: 10 Days (Down 23.1% from April 2021)
This report covers residential real estate activity in the Omaha area, which includes the counties of Dodge, Douglas, Sarpy, Saunders and Washington in Nebraska; the counties of Harrison, Mills and Pottawattamie in Iowa. Sources: Freddie Mac, Great Plains Regional MLS, and ShowingTime