“Rising inflation, soaring home prices, and increased mortgage interest rates have combined to cause a slowdown in the U.S. housing market. To help quell inflation, which reached 8.6% as of last measure in May, the Federal Reserve raised interest rates by three quarters of a percentage point in June, the largest interest rate hike since 1994. Higher prices, coupled with 30-year fixed mortgage rates approaching 6%, have exacerbated affordability challenges and rapidly cooled demand, with home sales and mortgage applications falling sharply from a year ago.”
“With monthly mortgage payments up more than 50% compared to this time last year, the rising costs of homeownership have sidelined many prospective buyers. Nationally, the median sales price of existing homes recently exceeded $400,000 for the first time ever, a 15% increase from the same period a year ago, according to the National Association of REALTORS®. As existing home sales continue to soften nationwide, housing supply is slowly improving, with inventory up for the second straight month. In time, price growth is expected to moderate as supply grows; for now, however, inventory remains low, and buyers are feeling the squeeze of higher prices all around.”
The Bottom line:
The combination of rising inflation, soaring home prices, and increased mortgage interest rates (30-year fixed mortgage rates approaching 6%) has worsened housing affordability issues and rapidly cooled demand, resulting in a slowdown in the US housing market.
As existing home sales continue to soften nationwide, housing supply is slowly catching up. In time, price growth is expected to calm down as supply grows, but for now, inventory remains low, and buyers are feeling the squeeze of higher prices all around.
Let’s take a look at some of the numbers from June 2022
June 2022 Omaha Area Real Estate Statistics
Average Sold Price: $348,460 (Up 13.7% from June 2021) Homes Sold: 1,468 (Down 12.3% from June 2021) New Listings: 1,877 (Down 4.9% from June 2021) Pending Listings: 1,274 (Down 15.3% from June 2021) Days on the Market: 9 Days (Same as that of June 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