The home market in the United States may eventually cool down.
Home sales remaining, a leading indicator of home market health, declined for the fourth straight month. The National Association of Real Estate (NAR) Home Sale Surplus Index, which tracks the number of homes under contract for sale, fell 4.1% in February from January to the same month last year. Compared to 5.4%. The results were disappointing as analysts predicted a 1.0% increase in sales a month ago, according to Bloomberg Agreement estimates.
The signing of the agreement in all four regions of the United States decreased compared to the same period last year. Only the Northeast recorded an increase in activity a month ago.
NAR chief economist Lawrence Yoon said in a press statement that “the number of homes left for sale in February has been reduced due to a reduction in the number of homes being sold.” “Customer demand is still strong, but it’s so simple that one can’t buy something that isn’t for sale.”
The whole list of accommodations continues to depress. According to NAR, there were 870,000 units for sale at the end of February, up 2.4% from January and down 15.5% from a year earlier. The unsold presence sits at 1.7-month supply at current sales momentum, above the record low supply in January 1.6 months and below the 2.0-month low in February 2021.
Lack of availability raises house prices to record highs.
The median current home price for all home types rose 15% to 7 357,300 in February, up 15.0% from February 2021, as prices rose in each region. This marks an increase of 120 consecutive months throughout the year compared to the previous year, which is the longest series on record.
“The number of homes for sale is very low and continues to decline compared to last year, keeping the pace of sales high. شوي 392,000 reached a new high in February, “said George Ratio, director of economic research for Realtor.com, in a press release before the results. “For buyers looking for a home, higher prices came at the same time as rapid inflation not only took away more than any salary, but also pushed up mortgage rates.”
Mortgage interest rates have risen more than half a point in two weeks – the biggest two-week jump since June 2009. The average 30-year fixed rate mortgage (the most common home loan) rate rose to 4.42%, up from 4.16% a week earlier, according to Freddie Mack.
“To be sure, mortgage rates have surpassed 100bps in the past year and are now at their highest level since 2019. Home performance should continue to move forward,” said Deutsche Bank analysts ahead of the results. Said in an investigative memo.
According to NAR, as of February 2022, higher mortgage rates and a consistent definition of rates have led to a 28% increase in mortgage payments over the year. Yoon predicts mortgage rates will range from around 4.5% to 5% for the rest of the year.
“The increase in house prices could easily translate into an increase in mortgage rates from another $ 200 to 300 300 per month, which is a big pressure for many families,” he said. They are already on a tight budget. ” Yoon predicts mortgage rates will be around 4.5% to 5% for the rest of the year and expects home sales to fall by about 7% in 2022 compared to 2021.
Yoon noted that home buyers should try to stop their mortgage interest rates now if they are buying a new home.
Amanda Feng is Yahoo’s finance director. Follow her on Twitter: amandafung
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