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Special Report

Housing Market Research Brief

October 2022

Home Sales Continue to Slide, Slowdown
Stretches Across Housing Continuum

Firm price tags keep buyers on the sidelines. Purchases of single-family homes declined for an eighth straight month, marking the lowest September measure since 2012. The elevated cost of borrowing, with the average 30-year fixed-rate mortgage surpassing the Global Financial Crisis peak in late October, is the primary contributor to this ongoing cooldown. Even with the option to refinance down the road, prospective buyers are remaining passive, likely due to an emerging price expectations gap. Over the last two quarters, the median price has come down by less than 1 percent, while the volume of home purchases plummeted almost 20 percent. Buyers could be anticipating greater price drops to help offset higher borrowing costs, but that has not come to fruition. The median sales price of a single-family home rose again in September to $390,800, reversing a three-month downward trend. A significant price correction may not be on the horizon, given the still-low number of home listings by historic standards.  

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