November 2022 Housing Market update (Chicago Southland Homes)

Supply (New Listings and Homes for Sale)
- New listings down 21% compared to October 2021, the fewest new October listings since 2011.
- 16.8% fewer homes for sale than October 2021 and by far the lowest October on record.
- There are fewer than half the number of homes for sale than the last “normal” October (2019)

Demand (Pending Contracts and Closed Sales)
- Pendings down 26% compared to October 2021, slightly outpacing the drop in new listings.
- Closings down 33% compared to October 2021, lowest October closings since 2011
- Both measures came in a bit below pre-COVID norms.

Months Supply
- Stayed flat at 2.0 months. Tied with 2021 for lowest months of supply of any October on record.
- Median days to contract rose from 11 days in September to 13 days in October, a typical seasonal pattern but at far shorter days than normal. Tied with 2020 for the 2nd lowest October after 2021.
- There are areas with greater than 6 months of supply (buyer’s market). Ask us about your area!

Prices
- Home prices are still rising, albeit slowly and flattening.
- October median sale price was up 1.5% over last October, the highest October on record.
- Seasonally adjusted median sale price remained flat for the 3rd month straight at its new record-high of $290,000, up 5.1% in the past year.

Mortgage rates
- Today’s (11/2/22) 30yr fixed averages 7.12%. Savings are small for a 15yr (75 basis points lower) or 5/1 ARM (50 basis points lower).
- The Fed announced today another 75-basis point increase to their target overnight borrowing rate, now the highest it’s been since January 2008.
- Expect continued volatility every time there’s a jobs report, inflation report, Fed announcement, etc. The market’s response to today’s Fed announcement swung 180 degrees just during the time that I prepared this update.

What to do?
- Sellers: There are still more buyers than sellers in most areas, but pricing has flattened despite that. Price aggressively and invest the energy into preparing and staging your home.
- Buyers: Affordability index is still on the decline, based on small increases in home prices and large increases in mortgage rates. If you happen to lock your mortgage rate on a bad day or a bad month, you can float down or refi later. Lock in your affordability. Marry the house, date the rate.
- Most of all, contact us for specific guidance about your needs!