Home News U.S. Home Prices Continue to Rise Even Amid Increasing Inventory

U.S. Home Prices Continue to Rise Even Amid Increasing Inventory

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Home inventories across the United States are growing more and more rapidly, up 17% year-on-year in the week ending Saturday, according to a Thursday report from Realtor.com. last week, The active list has increased by 13%.

New listings also increased by 3% last week, compared to 2% last week.

more: Existing home sales in the U.S. are expected to decline 6.7% in 2022

“We continue to see a growing number of new sellers who are the main drivers of consistent improvement in our active list.” Realtor.com Chief Economist Daniel Hale said in a statement. “But as listing prices and mortgage rates continue to rise, many buyers face affordable obstacles on their way to home ownership.”

Despite continued growth in inventories, price increases over the last two years have not yet subsided. Since the beginning of the year, median listing prices have risen 14.1%, active listings have fallen 12%, and home sales are nine days earlier than the previous year.

However, during the pandemic, prices are starting to rise at a slower pace than before. According to National Association of Realtors members, the median listing price for the week rose 16.9% year-on-year, marking a double-digit price increase for the 26th straight week.

Prices have risen at the same rate as the previous week, with the second week ending on Saturday in two months, with growth not accelerating compared to the previous week. Last week’s time to market was four days faster than the same period last year, but that number fell slightly from the previous week when homes sold five days earlier than the previous year.

Ultimately, continued increases in inventories are expected to have a more pronounced cooling effect on prices.

“our Newly updated 2022 forecast We anticipate that higher inventories will eventually cool the rise in home prices, but the double-digit pace has so far been surprisingly tenacious, “Hale wrote. “As rising housing costs begin to run out of some buyers’ budgets, those who stay in the market can expect a relatively less competitive situation by the end of the year.

“Last week’s trend suggests this relief comes as time in the market has decreased and prices haven’t accelerated,” Hale added.

(Mansion Global is owned by Dow Jones. Both Dow Jones and Realtor.com are owned by News Corp.)

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