Housing Bubble Woes: Supply Jumps, Sales Drop, Median Price Skewed Higher by Shift in Mix as Bottom Falls Out below $500k, amid Holy-Moly Mortgage Rates
Housing Bubble Woes: Supply Jumps, Sales Drop, Median Price Skewed Higher by Shift in Mix as Bottom Falls Out below $500k, amid Holy-Moly Mortgage Rates
Abstract
California special: Pending sales collapse by 30%, prices begin to "Moderate," San Francisco condo prices decline year-over-year. The old saw that there's no inventory for sale is no longer an excuse because supply jumped 12.6% in May - so sharply falling sales on sharply rising supply: "Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates this year," the NAR report said. The seasonally adjusted annual rate of sales in May fell to 5.41 million homes, the lowest since the lockdown sales rates: Inventory for sale and supply jump. In California, closed sales plunged, pending sales collapsed. According to the California Association of Realtors, sales that closed in May of houses plunged 15.2% in May year-over-year; and sales of condos plunged 12.3%. These are closed sales. Pending sales - a predictor of closed sales the following month - collapsed by 30.6% in May, "Likely due to eroding affordability, rising mortgage rates and home prices, and the increased risk of a recession," the CAR report noted. Sales of homes priced below $500,000 have plunged, while sales above $500,000 have surged year-over-year, and these dramatic changes the mix have skewed the median price upward, according to data from the NAR: Investor share of sales and all-cash sales dipped, but stayed in the same range.