It’s been difficult to identify a clear trend in price per square foot since interest rates began rising three years ago. However, we’re now seeing signs of softening both year-over-year and quarter-over-quarter.
As the sales schedules below show, the under-$250K price range saw increased activity in July, but the average price per square foot dropped significantly. Anecdotally, many of these homes appear to be teardowns or close to it, which likely explains the decline in price per foot despite higher sales volume.
In any case, this shift provides concrete support for price adjustments moving forward.
