Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% year-over-year as of last measure, according to the National Association of REALTORS® (NAR). Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in demand has been particularly hard on homebuilders, causing new-home sales and
construction to slow.

New Listings decreased 7.6 percent for Single Family but increased 4.5 percent for Townhouse/Condo. Pending Sales decreased 9.6 percent for Single Family and 1.1 percent for Townhouse/Condo. Inventory increased 45.8 percent for Single Family and 42.0 percent for Townhouse/Condo.

Median Sales Price increased 12.6 percent to $375,000 for Single Family and 25.2 percent to $263,500 for Townhouse/Condo. Days on Market increased 75.0 percent for Single Family and 80.0 percent for
Townhouse/Condo. Months Supply of Inventory increased 50.0 percent for Single Family and 50.0 percent for Townhouse/Condo.

Inflation, higher interest rates, and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.