What do the National Figures tell us?

Are you wondering what is happening in the market?  What steps should you be taking? That is a question many of us are asking ourselves, but it should really be up to the individuals needs and wants in the present moment. Do you need more room for a growing family? Are you recently divorced? Do you need to downsize? Have you experienced a life changing event?

Each year brings a new experience and no year is identical to the previous.  Take 2021, that was unusually robust and artificially exaggerated.  2020 experienced much reactionary activity.  So why compare 2022 to 2021 or previous years? The one comparison is, people are experiencing delayed decision making. Mainly  due in part, to all that is going on in the world, not just your own backyard.

Are you wondering what is happening in the national market? Although real estate is hyper-local, there is value to looking at what is happening nationally as a mirror of things to come.  The latest national market trends according to the National Association of Realtors (NAR) are:

Existing-home sales

• Decreased for the seventh straight month in August 2022, to a seasonally adjusted annual rate of 4.80 million units sold, on par with July’s rate (4.82 million) but down 19.9% from August 2021.
• 29% of existing sales in August went to first-time buyers. All-cash buyers accounted for 24% of transactions in August. 

New Construction

• The census bureau reported that builders broke ground on 1.575 million homes in August 2022, up 12.2% from July 2022 and roughly even with August 2021.
• There are more than 1.7 million homes currently under construction nationwide (multifamily and single-family combined), the most ever recorded

Sales Prices

• The median existing home price was $389,500 in August 2022, up 7.7% from August 2021.
• The median price of new homes sold in August rose to $436,800, up 8% from August 2021

Inventory

• At the current sales pace, there is a 3-month supply of existing homes available to buy (seasonally adjusted), identical to July 2022, and up from 2.6 in August 2021.
• Existing homes sold in August 2022 went pending in 16 days, up slightly from July’s record low (14 days), but down from August 2021 (17 days).
• 81% of homes sold in August were on the market for less than a month, according to NAR.
• There was an 8.1-months’ supply of new homes available to buy in August, down from 10.4 in July but up from 6.5 a year ago. 

When you look at the national figures, you see inventory is down, but prices are up. If you are considering selling your home, now is a good time.  Serious buyers are out!  If you are a buyer, now is a perfect time.  There is new inventory!  No one has a crystal ball as to mortgage rates.  You can always lock in now and refinance a few years down the road.  But always remember, what are your needs at the moment.  

Remember real estate is one of the most important decisions you will make.  It is personal and needs driven.  Think about what is driving your decision in the present. If I can help you in your real estate journey and answer any questions, please reach out to me at colleen.cassel@compass.com or 516-659-9855.
Thank you for reading and please share with your friends and family.
Colleen