“The new normal for mortgage rates will likely be in the 5.5% to 6.5% range,” Yun added. “Job gains will steadily become important in driving local home-sales markets. The South, in particular, is set to outperform the rest of the country, thanks primarily to better job market conditions in this part of the country compared to other regions.”
The NAR represents more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
Earlier this month, the NAR reported that existing-home sales decreased for the 11th consecutive month in December.
Existing-home sales in December 2022 fell 1.5% from November to a seasonally adjusted annual rate of 4.02 million. Year-over-year, sales dropped 34% and are down from 6.09 million in December 2021.
Single-family home sales declined to a seasonally adjusted annual rate of 3.60 million in December, down 1.1% from 3.64 million in November and 33.5% from the previous year. The median existing single-family home price was $372,700 in December, up 2.0% from December 2021.