March 2022’s pending home sales pace decreased 1.2% last month and dropped 8.2% from a year ago.
Rising interest rates are likely to put some upward pressure on cap rates in 2022.
Home prices rose at a surprising, accelerated pace of 19.8% year-over-year in the past three months as of February 2022.
REALTORS® reported an average of nearly five offers on each home that sold in March, the same as in February and one year ago.
According to Freddie Mac, the 30-year fixed mortgage rate rose to 5.11% from 5% the previous week. As a result, home buyers need to earn about $25,000 extra if they want to buy the typical home now compared to a year earlier.
Housing market activity in March 2022 weakened 2.7% from February 2022 and fell 4.5% from March 2021. Existing-home sales reached a 5.77 million seasonally adjusted annual rate.
The land market had its best year in nearly a decade in 2021 as land sales rose 6% and outperformed the pace of acquisitions of other commercial real estate types.
The conversion of vacant office space for residential use faces hurdles from rising rental and construction costs.
Mortgage rates surged to 5% for the first time in over a decade (since February 2011). Elevated inflation continues to push up mortgage rates.
With inflation running this high, the average consumer is spending $500 more compared to one year ago, or $6,132 annually.
Search Economists' Outlook
