The average price of houses and apartments in the United States reached an all-time high, exceeding $400,000 in May 2022, writes The Guardian. At the same time, the market has seen a drop in sales for the fourth month in a row, caused by rising mortgage rates and high prices.
The average residential property value in May of this year increased by 14.8% compared to May 2021, reaching $407,600. According to the National Association of Realtors (NAR), this is an all-time high since 1999. At the same time, NAR recorded a decrease in sales in the secondary market in May compared to April by 3.4% to 5.41 million years ago. Compared to May last year, sales fell by 8.6%. Experts note that May sales were mainly due to the closing of contracts signed one or two months ago before mortgage rates began to rise. The average 30-year mortgage rate rose to 5.78% in mid-June, the highest since November 2008, when the housing crisis occurred. Even though demand still exceeds supply, and houses are sold out quickly (the average exposure time in May was 16 days), experts expect a further decline in home sales. According to Realtor.com, home sales in the US in 2022 will decrease by 6.7% compared to last year.