While the past year-and-a-half took its toll on the real estate market, the latest news offered a glimmer of hope as data saw existing home sales rise. Despite 2021’s massive surge in real estate sales, 2022 generated a lackluster environment.
Although the most recent data reflected an increase in home sales, housing inventory still presents ongoing challenge. That said, the market took a step in the right direction.
Existing Home Sales Rise in February 2023
Last month, the latest housing news revealed a rise in existing home sales for the first time in twelve months. Overall, existing home sales account for roughly 90% of the market activity. Therefore, this means a big sales bump. Despite the increase, existing home sales still hover about 23% lower year-over-year.
Furthermore, inventory levels present an ongoing challenge for prospective home buyers. Notably, inventory levels increased 15% higher year-over-year. Having said that, the housing inventory still sits at a measly 2.6-month supply. With that in mind, this statistic falls well below the 6.0-month supply required for a balanced real estate market.
Mortgage Application Volumes Fell in February 2023
Aside from the rising existing home sales, mortgage application volumes fell once more. In January 2023, mortgage application volumes rose substantially after a decline in rates. However, the last month saw a course reversal.
In fact, the latest Mortgage Bankers Association (MBA) insights revealed a 44% year-over-year drop in purchase applications. Holistically, the represents the lowest level in 28 years. Even worse, applications to refinance plunged a massive 74% from one year ago.
Existing Home Sales Rise with Median Price Drop
Along with the rising existing home sales, new home sales increased from January. Worth noting, new home sales accrue the remaining 10% of real estate market activity.
After reaching a record high of $413,800 in June, the median existing-home price fell down to $363,000. This demonstrates a 0.2% decrease from February 2022, the first year-over-year price decline since 2012.
For insight on the latest real estate market data, contact the title and escrow specialists at Plymouth Title Guaranty Corporation.
Information accredited to MBSQuoteline.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office.
- If a party to the closing is not feeling well, please contact your closer before the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash their hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
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- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients to do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.