Amid this slowdown, home prices have continued to climb, with the national median rising 6.6% to $379,100 from a year earlier. While this is 8% below the peak recorded last June, it is still 40% above October 2019.
“That’s really hurting affordability,” NAR chief economist Lawrence Yun told the Associated Press. “Most household incomes have not risen by 40%.”
Inventory has likewise shrunk for the third consecutive month, according to the NAR’s data, with 1.22 million homes listed for sale by the end of October. This is 0.8% below September levels and equates to a supply of 3.3 months at current pace.
One reason for the drop in the number of homes listed for sale is rising mortgage rates, the Associated Press said, as homeowners who were able to lock in record-low rates from the last couple of years delay the purchase of a new home.
With listings down, homes sold within an average 21 days, up from 19 days in September. By contrast, homes typically sold after more than 30 days pre-pandemic.
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