Categories: US

Green shoots of recovery in housing market? Cautious optimism as numbers trend in good direction

Green shoots of recovery in the housing market? As mortgage rates fell below 7%, sales surge in anticipation of a pick-up, homebuyer demand brightens and mortgage applications level off – but a third fewer homes were sold in October

  • The last week of October saw a slight rise in some key metrics in the US housing market
  • Overall market health remains poor as most activity is down about 30% year-over-year
  • In some pandemic boomtowns, such as Miami, Las Vegas and Phoenix, sales have fallen by as much as 50%
  • Redfin’s deputy chief economist said the Federal Reserve has “shed the light at the end of the tunnel for slowing the pace of rate hikes”

A new report suggests that several elements of the homebuying market have stabilized in the last week of October, although home sales have fallen by about a third this month compared to last year.

The reportfrom redfin.com, points to a handful of measures that indicate that the housing market is picking up after a disastrous few months in which mortgage rates skyrocketed.

During the last week of October, mortgage rates fell slightly to 6.95% and google search for ‘homes for sale’ rose from the previous week.

Taylor Marr, the deputy chief economist for the tech-driven real estate brokerage, said the Federal Reserve recently “showed the light at the end of the tunnel for slowing the pace of rate hikes, but the exit of the tunnel may be more terrifying.” than expected.’

The number of open sales under contract increased slightly at the end of October as mortgage interest rates fell below 7%. Market observers aren’t sure yet if this will be a sign of a return to health for the market, or just a blip

However, agents report that first-time home buyers are returning to the market, thanks to this ability to shop slowly and ensure they get what they want in a home.

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“There is also a glimmer of hope in the data that buyers are no longer exiting the market as mortgage rates level off this week, but we are still deep in a market coping with the pain of higher mortgage rates.

“If last year’s housing market was as overheated as Chairman Powell said Wednesday, the record interest rate growth was like a bucket of water poured on the flames to balance it.

“It may take some time for the smoke to clear to see where things stand next year,” he said, noting that housing trends may well continue to deteriorate as the economy adjusts to higher rates.

Agents in the central parts of the country say they’ve seen a rise in first-time homebuyers and other budget-conscious buyers returning to the market to take advantage of their ability to be picky.

They take the opportunity to be specific about their wishes for housing functions and make under-demand offers as the market adjusts to the new pricing reality.

Despite some signs of market strengthening in the last week of October, overall home buying activity continues to decline by about 30% year-on-year.

Searches for homes for sale may be rising, but they are down 32% from October 2021. Touring activity is also down 30% from the start of the year and purchase requests are down 41% from October 2021. compared to last year.

Sales have also fallen by as much as 50% in pandemic boomtowns like Las Vegas, Miami and Phoenix — although prices in urban areas only fell in San Francisco, Oakland, San Jose and outside California, Lake County, Illinois.

The median US home sale price was $360,861 — up 4% year on year — and the median mortgage payment was $2,424 — up 48% from $1,703 a year ago when the rate was 3.09%. used to be.

Pending home sales remain 33% lower, the biggest drop since at least January 2015

Jacky

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