STATEN ISLAND, NY (Aug. 16, 2022)– The U.S. housing market continued to cool in July with rising mortgage rates and record-high sales prices stifling affordability for some homebuyers.
According to a newly released report from the Staten Island Board of Realtors® (SIBOR), prices of Staten Island homes continued to gain traction in July with the median sales price increasing 9.9 percent to $690,000, in contrast to $628,000 in July 2021.
The number of days on market until sale statistic was down 20.6 percent to 59 days. Buyers felt empowered as months supply of inventory was up 1.9 percent to 3.9 months.
Nationally, median household income has failed to keep pace with increasing mortgage payments, with the costs of buying a home about 80 percent more expensive now than they were just three summers ago, according to the National Association of REALTORS® (NAR).
“While we are beginning to see the start of a cooling in the market – with fewer multiple-offer situations and an increase in deals that fall through prior to closing – the market is still very strong, with prices continuing to rise as inventory levels lower,” said Sandy Krueger, CEO of SIBOR. “With debate continuing over the state of the economy and whether it is in a recession, it’s worth noting that recessions historically have not seen lower prices but have created reductions in mortgage rates.”
At a time of year when home buying activity is typically very strong nationwide, soaring homeownership costs have caused home sales to decline nationwide for the fifth consecutive month, with existing-home sales falling 5.4 percent month-to-month and 14.2 percent year-over-year as of last measure, according to NAR.
However, there is a bright spot: Nationally, inventory of existing homes has continued to climb this summer, with 1.26 million homes available at the beginning of July, equivalent to a 3 months’ supply.
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