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Continued housing market slowdown amid rapidly increasing prices
In the first month of second quarter 2023, the housing market had to endure the effects of rate hikes from March’s Federal Reserve meeting, resulting in continued reduced market activity, according to a recent report by HouseCanary titled U.S. Housing Market – State Level Report 55. Although the most recent rate hikes were lower than in previous months, the housing market still exhibited year-over-year decreases in contract and net new listing volume. Furthermore, net new listing volume continues to lag contract volume, yielding little relief to the inventory shortage. Meanwhile, listed and closed prices have rapidly reversed course from declining throughout the second half of 2022 and into early 2023, with prices now increasing rapidly month-over-month since the end of February.
The report states that as we enter May 2023, the real estate market continues to experience uncertainty, with the purchasing market slowdown being one of the key trends observed for over