September 2022 Housing Market Update - Northeastern Illinois
Sources: Midwest Real Estate Data LLC, MortgageNewsDaily.com
Do not listen/read/watch national news media for housing market information. There is no such thing as a "nationwide" housing market. In fact, even the facts and figures set forth in this article are for far too broad an area to be instructive for any specific decisions or plans you have. Consult a knowledgeable local real estate professional for the hyper-local data you need in order to make good decisions.
- Median days to contract rose from 8 days to 9 days, a typical seasonal pattern. 2nd lowest August on record after 2021 (8 days), and half what it was in Augusts pre-COVID (18-19 days).
- Showings per listing stayed perfectly flat from July to August at 7.1, lower than in July 2021 or 2020 but significantly higher than prior Augusts which were always under 5.
- Down 23% compared to August 2021, the fewest new listings in any August since 2011
- Down 17 % compared to August 2021, back into line with pre-COVID numbers after a July dip.
- Down 28% compared to August 2021, the fewest closed sales in any August since 2012 due to July pendings being down more than normal.
- 21% fewer homes for sale than August 2021 and by far the lowest August on record.
- Prior to February 2021, inventory this low had never been seen in our marketplace.
- Decreased from 2.1 months to 1.9 months, lowest of any August on record
- Despite what the news may be telling you, home prices are still rising!
- Seasonally adjusted median sale price reached a record-high of $289,900, up 5.4% in the past year.
- 30 days ago, on August 1 the average 30-yr fixed rate was at 5.05%. It trended upward through August, sitting today at 5.99%, the highest since they peaked in the 2nd half of June.
- FHA/VA loans are around 5.33%.
- Expect continued volatility and remember that bad news for the economy means downward pressure on interest rates, due to their close relationship with the bond market.
- THERE IS NOT “SURGING INVENTORY” IN OUR AREA AND IT IS NOT A BUYER’S MARKET OR EVEN CLOSE.
- Sellers still have the upper hand but can no longer be lazy or overly optimistic with pricing.
- Buyers should remember that prices are rising modestly, and if they happen to lock their mortgage rate on a bad day or a bad month, they can refi later. Marry the house, date the rate.?