Sales are likely to keep falling as buyers get priced out by mortgage rates, which are influenced by the Federal Reserve's key interest rate policies. And the Fed is all but guaranteed to keep raising rates aggressively until this historically high inflation reverses course. (Tune in next Wednesday when we see what Jay Powell and his merry band of nerds has in store for us this time...)

Despite that overall sales decline, certain markets are still bumpin'. Miami, for example, saw median home prices rise 40% from a year ago. (Orlando and Nashville homes were up nearly 31%.)

BOTTOM LINE

"A combination of higher prices and higher mortgage rates clearly has shifted the dynamics in the housing market," said Lawrence Yun, NAR's chief economist. "Even people who want to buy are simply priced out."

Even though home sales have slowed back to a 2019 pace, the market remains head-scratchingly brisk. The number of days a property is on the market before going into contract is the swiftest ever, at 14 days. (A year ago it was 17 days, and a more typical market would see properties on the market for close to 30 days.)

"Maybe buyers are trying to take advantage of a lower locked-in rate...They want to sign the contract and close the deal quickly," Yun said.

But sellers should take note: This brisk time on the market is not likely to last, Yun said.

Sales are likely to keep falling as buyers get priced out by mortgage rates, which are influenced by the Federal Reserve's key interest rate policies. And the Fed is all but guaranteed to keep raising rates aggressively until this historically high inflation reverses course. (Tune in next Wednesday when we see what Jay Powell and his merry band of nerds has in store for us this time...)

Despite that overall sales decline, certain markets are still bumpin'. Miami, for example, saw median home prices rise 40% from a year ago. (Orlando and Nashville homes were up nearly 31%.)

BOTTOM LINE

"A combination of higher prices and higher mortgage rates clearly has shifted the dynamics in the housing market," said Lawrence Yun, NAR's chief economist. "Even people who want to buy are simply priced out."

Even though home sales have slowed back to a 2019 pace, the market remains head-scratchingly brisk. The number of days a property is on the market before going into contract is the swiftest ever, at 14 days. (A year ago it was 17 days, and a more typical market would see properties on the market for close to 30 days.)

"Maybe buyers are trying to take advantage of a lower locked-in rate...They want to sign the contract and close the deal quickly," Yun said.

But sellers should take note: This brisk time on the market is not likely to last, Yun said.