Source: Fannie Mae Housing Forecast, August 2022
In projections released Monday, forecasters with Fannie Mae’s Economic and Strategic Research Group said they now expect 5.78 million homes to change hands this year. That would represent a 16.2 percent decline from a year ago — a steeper drop than the 15.6 percent pullback forecast in July.
“Despite a pullback in mortgage rates over the past month, recent incoming data point to a faster near-term slowdown in sales than we had expected, especially for new homes,” Fannie Mae forecasters said.
Olsen attributed the slowdown in price growth to rising mortgage rates, which forced many prospective buyers out of the market as the cost of buying a home shot through the roof. Data released last week by the National Association of Realtors (NAR) showed that sales of existing homes (not new construction) were down 20% on an annual basis in July thanks to soaring borrowing costs.
Bigger portion of Seattle homes sitting on the market for 30-plus days
- Buyer opportunities have returned to the Puget Sound market
- Active listings have nearly doubled from a year ago
- The market balance is favoring buyers
- “We are seeing builders moving their price points down and providing incentives to buyers in closing costs and buydowns to help borrowers obtain lower interest rates.”
- Overpriced listings have missed the market.
KIRKLAND, Washington (August 4, 2022) – New statistics from Northwest Multiple Listing Service confirm reports of a shifting housing market, prompting one industry leader to suggest “all parties involved in a transaction today have to recalibrate.”
“Today’s buyers have their cups finally overflowing with options as residential inventory grows to about two months of supply,” said Dick Beeson, managing broker at RE/MAX Northwest Realtors in Gig Harbor. The MLS report summarizing July statistics show 2.01 months of inventory system wide.
Commenting on the “many moving parts” of the market and the need to recalibrate, Beeson said sellers “are starting to see that overpricing just ain’t in the cards right now.” He also noted buyers still have to compete with other would-be homeowners, and depending on the property, some sellers are receiving offers over their asking price. “Buyer and seller expectations have changed. It feels like things are starting to normalize a little,” Beeson remarked.
The market balance is favoring buyers, reported Dean Rebhuhn, owner at Village Homes and Properties in Woodinville. “After experiencing multiple offers, shrinking inventory, or not being able to include inspection or financing contingencies with their offers, buyers now have choices,” he explained.
Growing Number of Experts Calling for Substantial Home Price Declines
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