As we move into the end of the month, here’s where we stand right now. Average pricing is down about $7K from one month ago, as is the closed to list price ratio (down from 2.85% above to 1.49%). We have 2,239 homes on the market vs 1,485 from the same month ago. Our 30 day absorption rate is up to 40.8 vs 29.4…there are 11.4 more days worth of homes on the market than there were a month ago.
Why? Interest rates have severely impacted affordability. Rising rates pushed monthly home payments passed the average household’s ability to buy.
Where is this headed? Logically, absent any other relief mechanism, prices will come down.