By by Calculated Risk on 3/21/2023 10:49:00 AM
Today, in the CalculatedRisk Real Estate Newsletter: NAR: Existing-Home Sales Increased to 4.58 million SAAR in February; Median Prices Declined YoY
Excerpt:
Median prices are distorted by the mix (repeat sales indexes like Case-Shiller and FHFA are probably better for measuring prices).
The YoY change in the median price peaked at 25.2% in May 2021 and prices are now down 0.2% YoY. Median house prices increased 0.5% from January to February and have declined 12.3% from the peak in June 2022 (NSA).
It is likely the Case-Shiller index will be down soon year-over-year.
Note that closed sales in February were mostly for contracts signed in December and January. Mortgage rates, according to the Freddie Mac PMMS, decreased to around 6.4% in December and 6.3% in January, and that provided a boost to closed sales in February. March sales will be for contracts signed in January and February, and mortgage rates averaged 6.3% in February too (spiking at the end of the month), so the impact from the recent increase in rates won’t happen until the April or May report.
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