Home Sales Cool First Half of 2022

(KNSI) — Unlike the weather, U.S. home sales are cooling off lately.

Realtor Shauna Pendleton says potential buyers are concerned about the future. “Inflation, gas prices. I mean, just everything happening in our world is topping people just buyers to be very nervous, very hesitant.”

If inflation continues to rise, the Federal Reserve will likely raise the interest rate that banks can charge each other, which will probably influence mortgage rates.

Potential buyer Rachel Payne is pausing her search, hoping her dream of owning a house someday becomes a little more attainable.

“We just have to think something’s got to change whether it is you know, prices decrease a little bit if interest rates stay the same. We’re kind of okay with that. As first time homebuyers, it’s like the downpayment is like the biggest thing for us.”

Zillow Chief Economist Skylar Olsen says it’s not bad that home sales are down.

“Lower price growth in housing is absolutely healthier. It’s a more sustainable market, it is generally better for shoppers to find that good match.”

In June, existing home sales fell for the fifth straight month in the U.S. The National Association of Realtors says they are down 21 percent since January.

Association chief economist Lawrence Yun says it’s unlikely the U.S. will see home values crash as they did. “The home prices still looks to be on a solid footing. Fortunately, we don’t have those funky, risky mortgages that was present 10 years ago during the subprime lending foreclosure crisis.”

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