The listings under contract chart has deteriorated over the last week:

I know it is only a week since we published this chart, but the last 7 days have seen the under contract count fall to below 7,100. This is the lowest level for the time of year since 2007 and emphasizes just how far demand has collapsed since April. With interest rates over 7%, a large section of potential buyers are priced out of the market.

However many sellers are also discouraged, as moving home would lose them the cheap mortgage rate they currently enjoy. We are seeing new listings arrive at the rate of just over 2,000 per week. We would normally see 2,400 to 2,700 at this time of year. Even so, contracts are getting signed at such a slow rate that inventory is starting to build again. Not at a dramatic speed, but the current rate is an extra 500 active listings added per week across all areas & types in the ARMLS database.

Supply is therefore growing while demand is falling which is driving the Cromford® Market Index lower - there is little doubt that it will fall below 100 within a week or so.

Market insights provided by the Cromford Report.