As reported by Forbes, the median existing home price in September was $384,800, down from June’s all-time high of $413,800, but still up 8.4% from last year. In mid-April 2022, economists had projected year-end interest rates on his 30-year fixed mortgage between 4.8% and 5.5%. Today the rate is 7.41%, up from 7.10% a week ago.
As a result, a large number of potential homebuyers have been priced down from the market.
Realtor.com chief economist Danielle Hale said: “Many buyers cannot navigate the housing market well in the face of these high costs.”
But as Hale et al. have noticed, there are signs that the housing market is healthier.
List prices remain high, up 13.3% from the same period last year, according to Realtor.com. However, about one-fifth of sellers made price cuts in his October. That’s more than double the number he cut a year ago.
Additionally, more homes are hitting the market. Inventory shortages have been a persistent problem since the housing crash of 2008 reduced new home construction. According to Realtor.com, the listing is down 15.9% year-over-year, but in October he’s up 33.5%.
Property market could improve in 2023
Many predict that simple economics will lead to a rosier housing picture in 2023. As House Digest reports, current high mortgage rates and home prices are making potential buyers more hesitant to make a home deal. Second, less competition forces sellers to lower their excessive asking prices in order to get more offers.
While acknowledging that it may take time for home prices to fall nationwide, according to CNN Business, markets outside metropolitan areas and experiencing the prospect of cheaper housing and better jobs. Relief may come first in some markets where
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Hale agreed. “Shoppers often look to markets where housing is more affordable as a way to avoid high housing costs,” she said. The market has been the tightest it’s been in years.”
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This article originally appeared on GOBankingRates.com: Mortgage rates at historic highs: Believe it or not, there’s a silver lining