PFSI - Housing market becomes more balanced as falling home sales lead to higher inventory
The U.S. housing market is "making steady progress toward balance," said Re/Max President and CEO Nick Bailey, as September's slump in home sales led a rebound in inventory .
With soaring mortgage rates and the median sales price of $400K up 6.7% from a year earlier, home sales fell 9.7% from August across 53 metro areas surveyed by Re/Max.
That presented buyers with more options as inventory reached two months' supply for the first time in almost two years, the report said. But supply still remains relatively tight compared with historical levels.
"For a long time, six months of inventory was the standard for a balanced market that favored buyers and sellers evenly," Bailey pointed out. "Now, with the evolution of technology and various changes in homebuying patterns, the new standard is becoming four months."
Furthermore, the average close-to-list price ratio in September was 99%, meaning that homes sold for 1% less than the asking price for the second straight month. The ratio was at 100% or above through the first seven months of 2022.
And even with growing inventory, new listings fell 7.6% from the prior month and -11.4% from the year-ago period.
Homebuilders: D.R. Horton ( NYSE: DHI ), KB Home ( NYSE: KBH ), PulteGroup ( NYSE: PHM ), Toll Brothers ( NYSE: TOL ), Lennar ( NYSE: LEN ), Beazer Homes ( NYSE: BZH ), Tri Pointe Homes ( NYSE: TPH ).
Mortgage servicers: Rithm Capital ( NYSE: RITM ), Ocwen Financial ( NYSE: OCN ), Mr. Cooper ( NASDAQ: COOP ) and PennyMac Financial Services ( NYSE: PFSI ).
Previously, (Oct. 7) Fannie Mae said home purchase sentiment sinks to 11-year low in September .
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Housing market becomes more balanced as falling home sales lead to higher inventory