Winter Brings Typical Housing Market Slowdown

By Helen Adams Realty - December 14, 2022

Winter Brings Typical Housing Market Slowdown

Reprinted from November 2022 CRRA Monthly Indicators

Housing affordability continues to be a major roadblock for market participants, with mortgage rates more than double compared to this time last year. Buyers are delaying home purchases in hopes rates will drop, while many sellers are holding off on listing their homes due to weakening buyer demand, unwilling to trade in their current lower rates for significantly higher borrowing costs on their next property. As a result, existing home and pending home sales have continued to slow as we move into winter.

New Listings were down in the Charlotte region by 27.0 percent to 3,350. Pending Sales decreased 36.1 percent to 2,868. Inventory grew 48.8 percent to 7,326.

Prices moved higher as Median Sales Price was up 8.1 percent to $381,000. Months Supply of Homes for Sale was up 80.0 percent to 1.8., indicating that supply increased relative to demand.

With home sales down, nationwide housing inventory was at 3.3 months’ supply heading into November, up from 2.4 months from this time last year, according to the National Association of REALTORS®. Although buyers have more options to choose from, home prices remain high, and soaring borrowing costs have caused monthly payments to increase significantly, with the average homebuyer paying 77% more on their loan per month compared to the same period a year ago, according to Realtor.com.

A Closer Look