Homebuyer activity continues to decline across New York State
Albany, NY – August 18, 2022 – The New York housing market continued to cool in July, as rising sales prices, low inventory, and high mortgage rates slowed buyer activity, according to the housing report released today by the New York State Association of REALTORS®.
Median sales prices once again rose, escalating 9.1 percent from $385,000 in July 2021 to $420,000 in July 2022. This marks 27 consecutive months in year-over-year comparisons that median sales prices have increased.
Inventory of homes for sale fell 13.9 percent in July 2022 – from 46,936 homes in July 2021 to just 40,426 this year. Months’ supply of inventory fell 5.7 percent from 3.5 months of inventory in July 2021 to just 3.3 months’ supply last month. A 6-month to 6.5-month supply is considered to be a balanced market.
Mortgage interest rates, which had risen for seven consecutive months, dropped slightly last month. According to Freddie Mac, the monthly average on a 30-year fixed-rate mortgage fell from 5.52 percent in June 2022, to 5.41 in July 2022. This is still over two percentage points higher than the rate of 2.87 percent in July 2021.
New home listings dropped to 16,841 units in July 2022 from 19,747 homes available in July 2021. This represents a 14.7 percent decrease. Closed sales declined as well, falling 14.1 percent from 14,302 homes in July 2021 to just 12,291 homes last month. Pending sales also were down, falling to 12,930 units in July 2022 from 14,221 units in July 2021, marking a 9.1 percent decrease.
Additional data is available at http://www.nysar.com/industry-resources/market-data.