Why Home Sales are Slowing

Home Prices Elevated; Sales Activity Waning

•Median price at $264,000 – up 17% since prior peak

•Sales activity down 10.3% in the past year

Interest Rates, Lifestyle & Affordability Slowing Sales

•Higher mortgage rates increase home payments

•Millennials favor flexibility, affordability & lifestyle of rentals – delaying family formation

•Reduced single-family construction restrains supply

What it Means for Commercial Real Estate

Broad Perspective: May slow economic growth and confidence levels, which could weigh on CRE

Retail: Remodel-related spending could see boost, while furniture stores face slower sales

Apartment: Sustained demand as households opt for rental lifestyle, flexibility and cost