March Monthly Market Updates

March 2022 Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory. Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS®. Builders are working hard to ramp up production—the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper new home sales, despite high demand for additional supply. New Listings decreased 14.7 percent for Single Family and 31.3 percent for Townhouse/Condo. Pending Sales increased 8.1 percent for Single Family and 5.9 percent for Townhouse/Condo. Inventory decreased 59.3 percent for Single Family and 75.2 percent for Townhouse/Condo. Median Sales Price increased 21.8 percent to $393,000 for Single Family and 22.5 percent to $318,173 for Townhouse/Condo. Days on Market decreased 25.0 percent for Single Family and 66.7 percent for Townhouse/Condo. Months Supply of Inventory decreased 64.5 percent for Single Family and 83.0 percent for Townhouse/Condo. Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at near-record low.

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