Housing Slowdown Provides Opportunities for Buyers, MBS Highway’s Latest Housing Index Survey Shows

MBS Highway’s monthly Housing Index survey provides a near real-time read on the activity and pricing pressures in the housing market, helping mortgage loan originators to better serve homebuyers.

HOLMDEL, NEW JERSEY, September 22, 2022 – Earlier this month, MBS Highway surveyed roughly 3,000 mortgage and real estate professionals around the country regarding current housing market conditions. The results for the September 2022 release showed that while there has certainly been a slowdown in activity and pricing pressure this summer, 41% of respondents said their market is still “steady to very active.” This is compared to 53% of respondents in August and 66% in July.

In terms of pricing pressure, 10% of those surveyed are still seeing “moderate to significant” price increases versus 16% in August and 33% in July. While 68% are seeing some degree of price reductions (as compared to 58% in August and 41% in July), respondents noted that many of these are listing prices that are coming down to more appropriate levels and not home value declines.

Regarding the pace of sales this month, 43% are seeing normal levels with homes selling near the asking price (on par with 40% in July and 45% in August), while 12% reported that the pace of sales remained rapid with multiple offers (versus 37% in July and 20% in August). The number of respondents reporting a slower pace of sales with price reductions rose to 45% in September, up from 23% in July and 35% in August.

Regional Highlights

The percentage of respondents describing their markets as steady to very active fell below 50% across all regions in September. Respondents were more likely to describe buyer activity in their markets as “somewhat slow” or “slower” this month, including 51% in the Northeast, 53% in the Midwest, 54% in the Southeast, 57% in the Mid-Atlantic, 61% in the West, 64% in the Southwest and 65% in the Northwest.

Moderate to significant price reductions were seen more in the Western part of the country, as noted by 77% of respondents in the West, 78% in the Southwest and 79% in the Northwest.

A normal to rapid sales pace with homes selling either near asking price or quickly with multiple offers remained the norm in much of the middle and Eastern parts of the country, with 63% of respondents in the Southeast, 74% in the Midwest and 83% in both the Mid-Atlantic and the Northeast describing their markets in this manner. However, once again these figures have decreased from July and August.

About MBS Highway’s Housing Index Survey

MBS Highway’s monthly Housing Index survey provides an accurate and near real-time representation of buyer activity, pricing pressure, and the pace of sales both regionally and nationally across the country. The survey fills a crucial industry need for insights that reflect buyers’ immediate experiences, helping mortgage loan originators to better serve homebuyers.

Dan Habib, Executive Vice President for MBS Highway, explained, “There are a few reliable housing reports available in the market, most of which are delayed by two months. Because MBS Highway has over 35,000 mortgage and real estate clients, we felt we were in a unique position to capture real-time regional housing data from our subscribers, who are on the front lines of the housing market.”