US Real Estate Weekly Update

(STACKER) — If you’re keeping your fingers crossed that home sales prices will drop in the near future, you might want to brace yourself for some disappointing news.

Despite the continued challenges buyers are facing in the housing market, all signs indicate that the housing market will remain difficult for buyers in the near future. Despite recent increases in mortgage interest rates, real estate analysts expect the United States to remain a seller’s market over the next two years, according to a new Reuters poll. This means for potential buyers that house prices could continue to rise during this period, especially if inventory levels remain low.

Reuters analysts also predict US house prices to rise another 10.3% in 2022. record high house prices.

Last year, a combination of historically low interest rates, extremely low housing inventory and pandemic-driven buyer demand sent home prices skyrocketing by more than 17% on average. . This was the biggest annual increase the housing market has seen in at least two decades – and the increase predicted for 2022 will only add to the high cost of housing nationwide.

Nor were these price and market forecasts the only surprising turn of events to occur in the housing market this week. At the end of February, the average rate for 30-year fixed-rate mortgages rose to more than 4% for the first time since 2019.

The Federal Reserve had also clearly signaled that an interest rate hike was likely to occur in the near future. But on March 1, mortgage rates took a downward turn, dropping to 3.9% from 4.18% the previous week. This was due, at least in part, to the Russian attack on Ukraine, which caused markets to fall and, as a result, an unexpected drop in mortgage rates.

While lower interest rates are generally a good thing for buyers in a normal market, making it cheaper to borrow money, this further interest rate cut could push more potential buyers onto the market. This could make it even more difficult for buyers to acquire properties at a time when inventories are at record highs. Any subsequent decline in interest rates would likely only aggravate the current problems in the housing market.

Median U.S. Home Selling Price

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Median selling price: $363,975
– Change over one year: +15.7%

Metros with the highest median sale price
#1. Metro San Francisco, California: $1.5 million
#2. Metro San Jose, CA: $1.4 million
#3. Santa Cruz, CA metro area: $1.2 million

Subways with the lowest median sale price
#1. Cumberland Metropolitan Area, MD: $124,750
#2. Springfield, OH metro area: $129,750
#3. Youngstown, Ohio metro area: $129,750

Median U.S. home selling price per square foot

Volodymyr Kyrylyuk // Shutterstock

Median selling price per square foot: $200
– Change over one year: +18.5%

Metros with the highest median selling price per square foot
#1. Metro San Francisco, CA: $1,072
#2. Metro San Jose, CA: $891
#3. Kahului, HI metro area: $835

Subways with the lowest median selling price per square foot
#1. Cumberland, MD Metro Area: $77
#2. St. Joseph, MO Metropolitan Area: $89
#3. Rockford, Illinois metro area: $89

Ratio of U.S. Home Sales to List Price

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Average ratio of sales to list price: 1.01
– Change over one year: +0.01

Metros with the highest sales/list price ratio
#1. Metro San Jose, CA: 1.12
#2. San Francisco, California Metro Area: 1.11
#3. Oakland, CA metro area: 1.11

Metros with the lowest sales/list price ratio
#1. Jonesboro, AR metro area: 0.95
#2. Metro Victoria, TX: 0.96
#3. Cumberland, MD metro area: 0.96

US homes sold with price cuts

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Homes sold with price reductions: 17.2%
– Change over one year: -2.2%

Metros with most homes sold with price cuts
#1. St. Joseph, MO Metropolitan Area: 40.0%
#2. Springfield, Ohio metro area: 38.3%
#3. Watertown, New York metro area: 38.3%

The metros with the fewest homes sold with a price drop
#1. Hinesville, Georgia metro area: 3.2%
#2. Corvallis Metropolitan Area, OR: 4.3%
#3. Seattle, Washington Metro Area: 6.0%

US homes off the market in two weeks

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Out of market in two weeks: 58.3%
– Change over one year: +6.9%

Metros with the most homes off the market in two weeks
#1. Seattle, Washington Metro Area: 92.4%
#2. Olympia, Washington Metro Area: 89.2%
#3. Mount Vernon, Metro Washington: 87.5%

Metros with the fewest homes off the market in two weeks
#1. Myrtle Beach, Metro SC: 1.8%
#2. Urban Honolulu, HI metro area: 4.5%
#3. Oshkosh, Wisconsin metro area: 6.6%

Months of supply

FOTOGRIN // Shutterstock

Months of supply: 7.8 months
– Change over one year: -1.8 months

Metros with the most months of supply
#1. Atlantic City, NJ Metro Area: 22.4 months
#2. Myrtle Beach, Metro SC: 18.1 months
#3. New York, NY Metro Area: 18.0 months

Metros with less months supply
#1. Metropolitan Lewiston, ME: 2.3 months
#2. Denver, CO metro area: 3.3 months
#3. Olympia, WA Metro Area: 3.6 months

METHODOLOGY

To help you stay up to date on the housing market, ZeroDown has compiled a weekly housing market report using data from Redfin. The statistics are for the four weeks ending February 27. Metros with more than 50 homes sold during this time period were considered for metro-level rankings for each statistic.

This story originally appeared on ZeroDown and was produced and distributed in partnership with Stacker Studio.

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