Impact of rates, high prices, and recession risk
Roseville, Calif.- With higher interest rates driving buyers from the housing market, we are seeing demand drop as the impact of rates, high prices, and recession risk reduce buyer confidence.
It's clear that over the past two years, the combination of the pandemic, low mortgage rates, and the opportunity to work remotely spurred greater demand. Now, as the market adjusts to a higher rate environment, we are seeing reduced activity which will be around until the market stabilizes.
National Association of Realtors
The National Association of REALTORS ® reported this week that contract signings were down 20 percent in June compared to the same period in 2021. NAR is forecasting home sales for 2022 will be down 13 percent from last year.
There is still a demand for housing and if interest rates stay near 6 percent NAR believes home sales will start to rise in 2023.