Home prices rise, but sales drop, as houses stay on the market longer
Aug. 19—Rising interest rates and rising prices continue to have an impact on home sales this summer, as that key economic Indicator continued to slow down across Dayton, Ohio and the nation in July.
Dayton-area sales of single-family homes and condominiums fell by more than 9% in July compared to the same month last year, the Dayton Realtors trade group reported this week.
Billie Duncan-Hart, who is serving as president of Dayton Realtors this year, agreed that higher interest rates and prices are simply part of the real estate landscape today.
"We've definitely not seeing the multiple offers on everything," Duncan-Hart said.
Some homes are lingering on the market today, while several months ago competing offers might have pushed that same home toward a sale far faster, she said.
Prices continued an upward trajectory as supply was squeezed, with July's average sales price reaching $250,226, surpassing last year's average by 11%, the organization said. The median price was also up, reaching $223,500, up more than 17% from last year, the group said.
Despite the lower number of sales, the 1,551 transactions recorded in July produced a cumulative sales volume of more than $388 million, a nearly 0.8% increase from last July.
"The year-to-date figures also shined a light on the realities of the current economy," Dayton Realtors said.
The number of sales year-to-date continued to fall, as they have since February. The 9,395 units sold dropped 3% from 2021 year-to-date figures at the same point.
But the January-July average sales price increased over 11% to $242,250, while the median price rose 10% to $205,000. Cumulative sales price rose 8% to $2.2 billion.
Supply of listings remains an issue. Listings submitted in July fell, with 1,892 entries, falling 12% from last July's 2,165 units on the market. For the January-July period, 11,786 listings were entered, which Dayton Realtors described as "relatively flat" compared to last year.
Still, nice homes and homes with in-ground pools remain prized by home shoppers, Duncan-Hart said.
"It is slowing down a bit," she said.
Statewide, the number of homes sold in July dropped 10.4% from the pace set in July 2021, according to Ohio Realtors.
And nationwide, the situation is no better. In July, existing-home sales were down 5.9% from June and 20.2% from one year ago, the National Association of Realtors (NAR) reported.
"The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June," said NAR Chief Economist Lawrence Yun. "Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers."
Ohio officials said the change is making things more normal.
"July 2022′s housing stats are showing signs of a market that is beginning to normalize," Ohio Realtors President John Mangas said in his own statement. "With rising mortgage rates now plateauing and more inventory becoming available, we should see improved opportunities for both homebuyers and home sellers."
