The number of existing homes being sold in the U.S. dropped by nearly 20% in August 2022 compared to August 2021, according to a new report from National Association or Realtors.

The group said that there was a seasonally adjusted annual rate of 4.80 million homes sold, down from 5.99 million a year ago.

With the Federal Reserve raising interest rates again on Wednesday, it is expected sales of existing homes will continue to decline.

"The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve's interest rate policy changes," said NAR Chief Economist Lawrence Yun. "The softness in home sales reflects this year's escalating mortgage rates. Nonetheless, homeowners are doing well with near nonexistent distressed property sales and home prices still higher than a year ago."

The NAR reported a 7.7% increase in median existing home prices from a year ago.

However, there is an indication that prices might be starting to cool. After reaching a peak of $413,800 in June, the median existing-home price in August was $389,500. The NAR noted that there is a seasonal trend of prices declining during the summer.

"In a sense, we're seeing a return to normalcy with the homebuying process as it relates to home inspections and appraisal contingencies, as those crazy bidding wars have essentially stopped," said NAR President Leslie Rouda Smith.

The average rate for a 30-year mortgage in the U.S. is down to 6.15%, according to Freddie Mac. That's the lowest since the week of Sept. 15, 2022. However, the rate is still 2.59% higher than a year ago.

Higher interest rates can add hundreds, if not, thousands of dollars to monthly payments.

Experts say the higher interest rates are a factor in sliding home sales.

According to the National Association of Realtors, pending home sales were down for the sixth month in a row in November.

"Pending home sales recorded the second-lowest monthly reading in 20 years as interest rates, which climbed at one of the fastest paces on record this year, drastically cut into the number of contract signings to buy a home," said NAR Chief Economist Lawrence Yun. "Falling home sales and construction have hurt broader economic activity."

People who can afford to pay off their homes in 15 years can get better rates. The average rate for a 15-year mortgage is 5.28%, according to Freddie Mac. While that's the lowest it's been since Sept. 2022, it's also 2.49% higher than a year ago.

Moving is a part of growing up: from home to dorm or apartment, from apartment into a condo or home, from one part of the country to another. While the reasons can vary, this year the coronavirus pandemic is motivating a lot of moves.

Realtor groups around the country have reported that home sales continue to be strong in many areas around the country, as buyers look for a new place to call their work-from-home office. The National Association of Realtors says August is poised to have a home buying peak, with year-over-year growth in home sales, buyer demand and housing prices.

Since many are discovering work can be done from a home located almost anywhere during the pandemic, moving trends are favoring smaller cities and reportedly lower rents and home prices.

Moving help website HireaHelper.com released results of a recent study on 2020 moving trends. They looked at more than 25,000 moves booked since March 11, 2020 to see where people were headed as the country manages the coronavirus pandemic.

According to HireaHelper, 15 percent of all moves they tracked were motivated by the pandemic. Of those moves, 37 percent were moving because they could no longer afford to live where they were living.

Their study also found high-rent cities like San Francisco and New York saw more people leaving than moving in; both cities had 80 percent more people moving out of the area than moving in. New York as a state had 64 percent more people leaving than moving in.

Meanwhile, the state of Idaho saw an increase of 194 percent more people moving in compared to leaving. The next closest state with high move-in compared to move-out numbers was New Mexico with a 44 percent increase.

According to a survey conducted in July by the Pew Research Center, one-in-five Americans (roughly 22 percent) have relocated because of the Covid-19 pandemic or know someone who has. Roughly 6 percent of those surveyed say someone has moved into their household because of the pandemic.

Overall those most likely being motivated to move or to have more people move into their home because of the pandemic are young adults, 37 percent of 18 to 29 year olds surveyed.

In that age group, roughly one-in-ten of them said they have moved because of the coronavirus outbreak. The reasons varied from colleges closing campus, work hours cutting back or being laid off.

Typically, there is a slow down in home sales and moving in the fall and winter. The National Association of Realtors says the pandemic has pushed the normal summer peak by a few months into August. Time will tell if the pandemic impacts moving trends into the later part of 2020.

Like almost every other sector of the economy, the coronavirus pandemic is having an impact on the housing market.

“It’s causing things to be a little more difficult,” said realtor Deborah Baisden.

Over the last few weeks, Baisden has been dealing with more and more homeowners worried about buying and selling their homes.

“Sellers, now, are in a position now where they are nervous about having people come into their homes,” explained Baisden. “So, we are trying to mitigate that as realtors by making sure they have windows open and we have hand sanitizers at the door.”

On the buyer’s side, realtors like Baisden are warning their buyers not to touch surfaces in homes they visit and are pushing for more virtual tours.

“So, there are a lot of ways we are trying to adapt, but it is affecting the volume of showings,” added Baisden.

And the impacts are showing on a national level. According to a new report from

Realtor.com

, the number of newly listed properties in the third and fourth week of March fell by 13 percent and 34 percent, respectively. The decline may indicate sellers are either de-listing their homes or holding off on prior plans they had to sell.

“The one good news for the housing market, unlike the stock market, is that we’re not seeing any volatility in prices,” said Lawrence Yun, an economist at the National Association of Realtors.

The National Association of Realtors has been tracking the decline of home sales and listings in March but has also been monitoring current activity that could make the housing market stronger in the weeks and months to come. For example, activity like the federal government lowering interest rates.

“I anticipate interest rates will remain low for quite some time, and for those with secure employment, it is a great opportunity to grab those low mortgage rates,” Yun added.

So, for those who de-listed their homes or who were planning to sell now but are holding off, Yun and Baisden advise you to use this time to get your home ready for when the market bounces back.

“Sellers, start prepping,” said Baisden. “Start doing some landscaping and all of those things you can start to do to make sure you are ready, because as soon as we start flattening that curve, things are going to explode again.”

In Baisden’s 30-year career, she has learned spring is usually real estates’ busiest season, and she believes this year, COVID-19 will just push that until summer.