Well, it looks like the housing market is starting to bounce back from its October slump. According to a recent report from Redfin, a tech-savvy real estate brokerage, early-stage buyer demand has increased significantly since hitting rock bottom at the end of October.
Redfin’s Homebuyer Demand Index, which tracks home-tour requests and other services from Redfin agents, is up 10% and mortgage-purchase applications have increased a whopping 14% since October. The main reason for this boost in demand?
Mortgage rates have steadily declined, with the weekly average coming in at a low 6.31% this week. That’s a savings of over $200 on a monthly payment for the typical homebuyer.
But before you start celebrating a full-blown housing market recovery, let’s not get ahead of ourselves. Demand and purchase applications are still down significantly from this time last year, and pending home sales have dropped over 30% year over year.
Plus, homes are selling at their slowest pace in almost two years. And while the median home-sale price did increase by 1.4% year over year, it’s the slowest growth rate we’ve seen since the start of the pandemic.
Redfin Deputy Chief Economist Taylor Marr thinks that mortgage rates will continue to decline thanks to slowing inflation and the Federal Reserve potentially easing rate hikes in the new year.
This could lead to a gradual recovery in the housing market early next year. However, Marr cautions that “don’t call it a comeback or even a recovery yet; demand is still way down from its peak.”
Looks like it’s still a bit of a mixed bag in the housing market. While demand is on the rise, home sale prices are falling in many areas across the country, with 15 of the 50 most populous US metros experiencing year-over-year declines.
San Francisco saw a 7.3% decline, San Jose saw a 5.8% decline, and Los Angeles saw a 3.3% decline. Even Austin and Pittsburgh saw declines of 3% and 2.6%, respectively. But hey, at least mortgage rates are down and that’s something to be grateful for, right?
It’s clear that the housing market is still in a state of flux, and it’s hard to predict what will happen next. But one thing is certain: if you’re looking to buy or sell a home, now is the time to act. With mortgage rates at an all-time low and demand on the rise, there are plenty of opportunities for buyers and sellers alike. So don’t wait —get out there and make your move!
As you already know, the housing market is in a state of flux. Mortgage rates have been steadily declining, and early-stage buyer demand has increased significantly since October.
However, home sale prices are falling in many areas across the country, with 15 of the 50 most populous US metros experiencing year-over-year declines. It’s clear that now is the time to act if you’re looking to buy or sell a home, as there are plenty of opportunities for buyers and sellers alike.
It’s important to remember that the housing market is still in a state of flux, and it’s hard to predict what will happen next. That’s why it’s important to do your research before making any big decisions.
Talk to a real estate agent or financial advisor about your options, and make sure you understand all the risks and rewards associated with buying or selling a home. With the right information and guidance, you can make an informed decision that will help you achieve your real estate goals.
