The index incorporates median existing-home prices, median family incomes and average mortgage rates. The median price of a home in the U.S. reached a record $407,600 in May, according to the NAR, as mortgage rates more than doubled since January to the highest level in 13 years.
The real estate firm's chief economist, Danielle Hale, told ABC News there are two reasons for the rise in inventory. "A couple of months ago, it wasn't unusual for a home to get 10 to 20 offers," said Sarah Drennan, executive vice president at Terrie O'Connor Realtors in Northern New Jersey."Now, they're still getting a number of offers, but it's less than 10."
"We're not seeing a price reduction, we're seeing just a deceleration of price increases," said Drennan."So prices are still increasing, just not at double digit rates like we were seeing just a few months ago." "The current inventory has doubled from what it was in March and April; however, it is still about a third of what it was three to four months ago. There have been more price reductions and fewer bidding wars," she added.
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