The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac. The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year.

As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.

New Listings

New listings decreased 18.4% for single family homes and 18.1% for townhouse-condo homes.

Pending Sales

Pending sales decreased 45.1% for single family homes and 47.4% for townhouse-condo homes.

Inventory

Inventory decreased 18.7% for single family homes and 15.9% for townhouse-condo homes.

Median Sales Price

Median sales price increased 16.6% to $1,079,000 for single family homes and 20.9% to $665K for townhouse-condo homes.

Days on Market

Days on market decreased 26.3% for single family homes and 39.1% for townhouse-condo homes.

Months Supply

Months supply of inventory decreased 7.1% for single family homes but remained flat for townhouse-condo homes.

Affordability

Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat. Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking five straight months of under contract declines, according to the National Association of REALTORS® (NAR). Inventory remains low, with only two months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year. Homes are still selling quickly, however, and multiple offers are common in many markets.

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[This report was provided by the Pacific Association of REALTORS® (PWR)]