Home Expense Up 80% From June 2019

Home sales expected to grow by early 2023

“Buying a home in June (2022) was about 80% more expensive than in June 2019,” notes the National Association of Realtors (NAR).  In fact, almost 25% of June 2019 buyers would not have qualified for a mortgage this year as median prices outpaced income growth.

This June, pending home sales dipped after May’s small uptick.  All areas of the country experienced lessening in sales both month-over-month as well as compared to the prior year. 

The biggest decline happened in the Western part of the United States, with pending sales down 30.9% from June 2021.   Midwest pending home sales declined 13.4% from June 2021.

Should mortgage rates continue to climb, home sales will fall, according to NAR’s Chief Economist Lawrence Yun.  On the other hand, if mortgage rates reach their highest in July, “pending contracts should also begin to stabilize,” says Yun.

Concerning a forecast for home sales, Yun says sales “will be down by 13% in 2022, according to our latest projection.  With mortgage rates expected to stabilize near 6% and steady job creation, home sales should start to rise by early 2023.”

Post authored by Lora Bray.

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