To combat inflation, the Federal Reserve increased its benchmark interest rate by 0.25% to a range of 4.50% – 4.75% in February. This marks the 8th rate hike since March of the previous year, when the interest rate was close to zero.
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Single-family homes median sales price is down 25.4% when compared to last year
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Condos/TICs’Coop median sales price is down 6.3% when compared to last year
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For all property types, the median sales price is down 14.1% when compared to last year
Despite remaining higher than last year, home prices have been slowing down across the country due to reduced buyer demand from its peak levels. To counter this, sellers have been offering sales incentives and reducing prices in an effort to attract potential buyers. However, buyers have still been facing challenges with affordability, especially during this winter season.
Although there was a slight improvement in buyer activity earlier this year with a decline in mortgage rates, recent weeks have seen rates increasing again, leading to a decrease in buyer interest and resulting in reduced sales activity heading into spring.
