Monthly payments are going up as mortgage rates continue to climb but a boost in new listings could signal a fall price cooldown.
Rates have soared to their highest level in more than two decades, sending monthly housing payments to record highs. A buyer with a $3,000 monthly budget has lost almost $40,000 in purchasing power YOY as rates rose from 6.5% to nearly 8% today, according to a new analysis from Redfin.
This is exacerbated by stagnant home inventory, which continues to trend down as stock shortages are keeping home prices high even as competition peters out. The total number of homes for sale is down 14%, Redfin noted.
The typical home sold for $371,000 during the four weeks…
Competition has returned full force to the housing market as demand for limited inventory sends home prices soaring.
Black Knight’s latest Home Price Index hit a new record in May, with prices up 0.7% month-over-month and 8.9% YOY. This is the fifth consecutive month of gains.
Many markets experienced home price declines in the last few months, but that trend seems to be reversing. Of the 50 largest markets analyzed by Black Knight, 27 hit their prior price peaks or set new records this spring.
“There is no doubt that the housing market has reignited from a home price perspective,” said Andy Walden, Black Knight Vice President of Enterprise Research. “The reheating is widespread, with more than half of the…
Annual single-family home price growth dipped from Q3 2022 to Q4 2022, according to Fannie Mae’s Home Price Index. Prices rose by 9.2% YOY in Q4, down from 13.1% in Q3. They increased just 0.2% quarter-over-over when seasonally adjusted, and fell 1% unadjusted. The index measures the average quarterly price change for all single-family properties in the United States, excluding condos. “The rise in mortgage rates over the past year and record inflation have constrained the purchasing power of prospective homebuyers. The resulting affordability pressures are evident in the home price declines of the past two quarters, along with the downturn in home sales,” said Mark Palim, Fannie Mae Vice President and Deputy Chief Economist. Demand has dwindled as many…
Inventory saw a record uptick in the four weeks ending December 4th as buyer demand dwindled and homes lingered on the market, according to new data from Redfin. The total number of homes for sale rose 15% YOY in that period, the largest increase recorded in Redfin’s Homebuyer Demand Index. New listings fell by 20%, however, suggesting the stock shortage will be ongoing. Demand has dwindled as many homebuyers were priced out of the market by sky-high prices and rates. Buyers who could afford a home when interest rates were at historical lows found that in 2022, they couldn’t afford anything. But homebuyer demand did rebound from an all-time low, up 5% from a week prior as rates continue to…
New home sales fell in July to a seasonally adjusted annual rate of 511,000, down 12.6% from June and 29.6% YOY, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. The massive dropoff can be attributed to the rising cost of buying a home. Home price appreciation and increasing interest rates are pricing potential buyers out of the market. Between rates and prices, the monthly mortgage payment on a typical US home is 62% higher than a year ago. Meanwhile, some sellers are opting not to put their homes up for sale, exacerbating the stock shortage and driving up competition. About half of all homeowners have a rate under 4% and are disinclined…
Housing inventory rebounded in June, rising 2% across the country, according to a new report from Redfin. This is the first annual inventory increase since July 2019. Rising mortgage rates, home price appreciation, and a looming recession have pushed some potential homebuyers to the sidelines. Home sales were down almost 16% YOY, the largest drop since May 2020. “The country’s economic woes have already cooled the housing market, and they’re likely to continue dampening demand,” said Redfin Chief Economist Daryl Fairweather. “The Fed has signaled it may increase interest rates further to combat stubbornly high inflation, which could harm consumer confidence, and lower stock prices mean fewer prospective homebuyers can afford a down payment.” Housing affordability is at its lowest…
Inventory increased for the first time since June 2019, with active listings up 8% YOY, according to Realtor.com’s May housing data. An inventory increase is a good sign for the market, which is facing pressure as rising rates and soaring home prices are causing potential buyers to back off. The national median listing price in May was $447,000, up 17.6% YOY and 35.4% from May 2020. Purchase loan applications are down 14% YOY, reaching their lowest level since December 2018. However, active listings were still down 48.5% from May 2020, meaning inventory is still half of what it once was. And while active listings grew, the total inventory of unsold homes, including pending listings, fell by 3.9% thanks to a…
Active listings were down only 12.2% in April, its smallest YOY decline since December 2019, according to Realtor.com’s Monthly Housing Trends Report. This suggests that inventory may be about to bounce back up after the crippling shortage of the last year. Though new listings declined, the number of homes under contract saw a YOY decrease as well, closing some of the distance between supply and demand. Pending listings were down 9.5% YOY. Improvements were seen in the share of mid-sized homes, adding to listings for families upgrading from starter homes and possibly easing the way for first-time homebuyers who have struggled to find affordable entry homes during the pandemic. “April data suggests a positive turn of events is on the…
Good Morning! Today is Thursday, March 24. Madeleine Albright has died of cancer at age 84. President Biden landed in Brussels for three back-to-back meetings with G7 leaders, NATO allies, and the European Union. The Mortgage Note Reports Biden-Harris Tackle Equity In Lending And Appraisals: Vice President Kamala Harris joined officials from the U.S. Department of Housing and Urban Development on Wednesday to announce the delivery of a plan aimed squarely at dismantling racial bias in the lending and appraisal process. New Home Sales: New home sales dropped in February for a second month, suggesting buyers are taking a step back thanks to high prices and rising mortgage rates. Housing Predictions: A panel of housing experts surveyed by Zillow said they don’t expect inventory or first-time…
Inventory and first-time buyers won’t bounce back until 2024, according to Zillow’s Home Price Expectations Survey. The survey polled a panel of housing experts who said they anticipate for-sale inventory levels will take two years to climb back to pre-pandemic levels. Total inventory fell from a monthly average of just 1 million in 2021 and early 2022 figures aren’t looking any better, both down from 1.6 million units in 2018 and 2019. The largest group of Zillow’s respondents (38%) expect inventory to reach 1.5 million units or more in 2024, though the second largest group (36%) predicted 2023. “Inventory and mortgage rates will determine how far and how fast home prices will rise this year and beyond,” said Zillow senior…
