Median sales prices dropped in Q3 largely due to seasonal trends as median sales typically peak in Q2 and drop in summer. Additionally, this is attributable to changing market conditions like shifting interest rates, inflation, stock market volatility, and consumer confidence.
On the supply and demand side, after a decrease in demand in the summer months, conditions have stabilized. Generally, sales numbers are no longer dropping appreciably, but days on market has increased and overbidding is dropping.
It bears repeating that the market was overheated in 2021 and early 2022 so many quarter-to-quarter and year-over-year comparisons are a bit distorted. And while comparisons to 2008 are still being made, the precipitating factors in the housing crash then are simply not present now. Mortgage payments as a percentage of income and loan delinquency rates are at all-time lows, and we aren’t seeing a frantic sell-off of properties like in 2008. With major economic changes at play, the market is currently experiencing a correction, but not a crash.