NVAR Reports Sluggish Home Sales and Limited Selection in October Higher Mortgage Rates and Low Inventory Both Factors
FAIRFAX, Va. (November 16, 2022) – Driven by higher mortgage rates, October housing sales continued to fall, dropping 37.4% compared to October 2021. Meanwhile, limited inventory pushed prices up 4% from the previous year, according to the Northern Virginia Association of Realtors® (NVAR). 
“Interesting dynamics are shaping our local market as sales continue dropping but prices keep rising. Even though it remains a seller’s market, the slowing market is also bringing a little more parity to the marketplace as buyers have more bargaining power than over the past two years,” said NVAR Board Member Miguel Calvo, Keller Williams Fairfax Gateway. 
The number of closed sales in October 2022 was 1,275 units, a decline of 37.4% compared to October 2021 and down 11.6% compared to September 2022. The number of closed sales is also down compared to (pre-pandemic) October 2019, when there were 1,719 closed sales. 
The average days on the market in October 2022 was 25 days, up 8.7% compared to October 2021. However, this was unchanged from September 2022. Months’ Supply Inventory for October 2022 was 1.2 months, up 8% from October 2021 and was the same as September 2022. 
The cost of buying a home is still rising. The median sold price for a home in October 2022 was $650,000, up 4% compared to October 2021. This is also a significant increase compared to the (pre-pandemic) October 2019 median sold price of $549,900. In addition, this was a jump from September 2022 when the median sales price was $619,142. 
“This story is exactly why working with a Realtor, in this changing market, will ensure a smoother process in both homebuying and selling. Mortgage rates are rising, and inventory is decreasing. We expect this to continue as active listings are also declining. NVAR is committed to supporting our members and consumers at the highest level as we all navigate this shift in the market,” expressed NVAR CEO Ryan McLaughlin.
Survey Asks Americans About the Housing Market 
Each month, Fannie Mae surveys Americans about their perceptions of the housing market, whether it's a good time to buy or sell a home, their job, income, and expectations for home prices and mortgage rates. The results from its Home Purchase Sentiment Index, which has been tracking how we feel about the housing market and economy since 2011. 
According to the most recent results, Americans are feeling less confident these days. In fact, October's survey found a declining number of participants who say now is a good time to buy or sell a home. Doug Duncan, Fannie Mae's senior vice president and chief economist, says the survey is an indication that consumers are feeling pessimistic. “Consumers are feeling increasingly pessimistic about both home buying and home selling conditions,” Duncan said. “Amid persistently high home prices and unfavorable mortgage rates, the 'bad time to buy' component increased to a new survey high this month, while the 'good time to sell' component continued its downward trend.”
WOODBRIDGE, VA. November 14th – This month has brought in a new set of market statistics hot off the press and ready to be read. The stats, generated by SmartCharts, and gathered through data provided by Bright MLS, give readers a valuable snapshot of what’s hot, and what’s not. 
Diving into the first statistic, 463 homes were sold across the month of October, this is a noticeable decrease of 35.78% percent in comparison to October of 2021. New listings reveal a 32.49% decrease with 536 new listings as opposed to 794 in October of 2021. Moving on to our active listings, there was a significant increase with 714 listings in comparison to 2021’s 487 active listings. Also, coming in hot is the median sold price of homes, with there being an 6.08% increase to $498,000 as compared to last years $452,500. Finally, the average days on the market saw an increase from 14 in 2021 to 24.
What Are Home Buyers' Biggest Misconceptions? 
Home buyers are more likely to be focused on their budget, the latest listings, and the details of their upcoming move than they are the ups-and-downs of the housing market. Because of this, prospective buyers sometimes have misconceptions about what's happening in the market and what's likely to happen in the weeks and months ahead. 
So, what are the biggest misconceptions today's buyers have about the market? Well, according to one recent survey of real-estate agents, many of today's aspiring buyers mistakenly believe home prices are about to suffer a significant decline. In a slowing market, it's a legitimate concern. However, it's unlikely since there continues to be a lack of available homes for sale and that lack of supply will still be putting upward pressure on home prices for the foreseeable future. The other common misconception, according to surveyed agents, is that it's better to wait for mortgage rates to fall before buying. Right now, though, buyers have more options and more negotiating power. If rates were to fall, other sidelined buyers would return, resulting in a market with more competition, quicker sales, and more bidding wars.
Demand For Home Purchase Loans Increases 
According to the Mortgage Bankers Association's Weekly Applications Survey, demand for loans to buy homes increased last week for the first time in more than a month. The improvement was slight and, when combined with a 4 percent drop in refinance activity, meant the MBA's Market Composite Index – which measures overall mortgage demand – was virtually unchanged from the previous week. Joel Kan, MBA's vice president and deputy chief economist, says demand remains low. “Purchase applications increased for the first time after six weeks of declines but remained close to 2015 lows, as home buyers remained sidelined by higher rates and ongoing economic uncertainty,” Kan said.
“Refinances continued to fall, with the index hitting its lowest level since August 2000.” That demand has slowed isn't surprising, especially since mortgage rates continue to climb. Last week, rates were up across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, fixed-rate loans, and ARMs. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. 

The Team USA Real Estate @ RE/MAX Executives 


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