Home Price Plateau Continued in October While Rising Interest Rates Chilled Sales (October 2022 Market Report Preview)
- The typical U.S. home value was nearly flat from September to October (+0.1%), as buyers and sellers potentially settled on a new market equilibrium.
- Some pricey Western markets like Los Angeles (+0.8%) and Riverside (+0.4%) abruptly snapped their steep value-losing streaks; only time will tell if September was the nadir for these cities.
- Las Vegas (-2.3%) and Austin (-2.2%) saw the sharpest home value declines.
- Active inventory’s rebound stalled out at a mere 1.8% year-over-year increase in October.
- Many sellers are waiting out the market cooldown, at least evidenced by the flow of new for-sale listings hitting the market, now down 23.9% from last year’s flow.
- The number of newly pending listings in October dropped a whopping 35.1% compared to last October.
- Asking rents fell 0.1% month-over-month, the first monthly decline in two years, and comparable to October in each of the three autumns before the pandemic. Rents are still 9.6% above year-ago levels.
Note: In September 2022, Zillow’s Economic Research team began releasing an early preview of our monthly market data, offering an accelerated first look at the previous month’s key housing metrics. More detail will be included later in the month in our standard full-length Monthly Market Report.