Buds of a housing market recovery?A rise in home sales was put on hold as mortgage rates dipped below his 7% mark, with homebuyer demand picking up slightly and mortgage applications flattening out, but sold in October. housing decreased to one-third of his
- The final week of October saw slight gains in several key indicators of the US housing market
- Overall market health remains low as most activity remains down around 30% year-on-year
- Some pandemic boomtowns like Miami, Las Vegas and Phoenix have seen sales drop by as much as 50%.
- Redfin’s deputy chief economist said the Fed has “brought light at the end of the tunnel to slow the pace of rate hikes”
A new report suggests that some elements of the homebuying market stabilized in the final week of October, but home sales remained down about a third over the month compared to last year.
of reportfrom redfin.com, points to some indicators that the housing market is on the rise after disastrous months of soaring mortgage rates.
Mortgage rates fell slightly to 6.95% in the last week of October, Google Searches for ‘homes for sale’ increased from last week.
Taylor Ma, deputy chief economist at technology-enabled real estate brokerage, said: federal reserve Recently, “we can see light at the end of the tunnel to slow the pace of rate hikes, but the exit of the tunnel could be more terrifying than we expected.”
The number of pending sales under contract increased slightly at the end of October as mortgage rates fell below 7%.Market observers are still unsure if this is a sign of a return to market health or just temporary.
But agents report that first-time homebuyers are taking the opportunity to return to the market empowered, shop slowly, and make sure they’re getting what they want in their homes. .
“Although there is some glimmer of hope in the data that mortgage rates have flattened out this week and buyers are stuck in the market, there is still a sliver of hope in the market coping with the pain of rising mortgage rates.
“If the housing market was overheating last year, as Powell said Wednesday, then the record rise in interest rates was like a bucket of water poured into the flames to balance it out. .
“It may take some time for the smoke to clear and see what things are like next year,” he said, adding that housing trends could continue to deteriorate as the economy adjusts to higher interest rates. He also mentioned that it is very high.
Agents in the central part of the country say first-time homebuyers and other budget-conscious shoppers are trending back into the market to take advantage of their ability to choose.
They are using this opportunity to be specific about their desires for home functionality and offer below-ask offers as the market adapts to the new pricing realities.
Despite signs of a return to strength in the market in the final week of October, activity in the homebuying sector remains generally down about 30% year-on-year.
Searches for homes for sale may be on the rise, but are down 32% since October 2021. Tour activity is also down 30% year-to-date and purchase requests are down 41% from last year.
Sales also fell a whopping 50% in pandemic boomtowns such as Las Vegas, Miami, and Phoenix, while metropolitan prices fell only in San Francisco, Oakland, San Jose, and outside of California, Lake County, Illinois.
The median US home sales price was $360,861, up 4% year over year. His median mortgage payment was $2,424, up 48% from $1,703 (3.09%) a year ago.
Pending home sales remain down 33%, the biggest drop since at least January 2015.