SPRINGFIELD, Mass. (WWLP) – As general economic turmoil continues experts have reclassified the state of the American housing market saying we have entered a “housing recession,” according to a report from the National Association of Realtors.

Prices continue to increase now up nearly 11 percent from this time last year. But sales are dropping, down six percent from June and more than 20 percent from a year ago. The decline in sales follows a months-long hike in federal interest rates, up 2.5 percent just this year, and is starting to slow down production.

That’s good news for homeowners as their houses continue to increase in value. It’s good news for potential buyers who are starting to see more balanced supply and demand, giving them something to work with at the negotiating table.

In the Pioneer Valley, home sales have decreased in July but they’re still selling for more money compared to July 2021. The median sale price for homes was $325,000, which is about 6% higher than last year of $305,000.

There were 502 homes sold in July this year, which is down 16.1% over July 2021 with 598 homes sold in Franklin, Hampden, and Hampshire Counties. The inventory of available homes for sale in was also down 9.8% with 710 on the market versus 787 homes on the market in July 2021.