{"id":75608,"date":"2022-12-22T09:36:45","date_gmt":"2022-12-22T17:36:45","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=75608"},"modified":"2022-12-30T12:43:46","modified_gmt":"2022-12-30T20:43:46","slug":"housing-market-update-demand-uptick-sales-decline","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-update-demand-uptick-sales-decline\/","title":{"rendered":"Housing Market Update: Typical Monthly Payment Is Nearly $300 Less Than October Peak, Bringing Some Homebuyers Back"},"content":{"rendered":"

Redfin agents report some buyers are resuming their search as home prices and rates fall from their peak, but the uptick in house hunting hasn\u2019t yet translated to sales.\u00a0<\/span><\/i><\/h2>\n

The typical U.S. home sold for roughly $352,000 during the four weeks ending December 18, down 10% from a peak of $391,000 in June and up just 1% year over year. Average mortgage rates declined for the sixth straight week to 6.27%, cutting nearly $300 from the typical homebuyers\u2019 monthly housing payment since it hit a peak in late October with 7% rates. The typical for-sale home was listed for 39 days before going under contract, the longest period since August 2020, contributing to the biggest supply increase on record.\u00a0<\/span><\/p>\n

The combination of slowing price growth, lower mortgage payments and homes sitting on sale for well over a month is making the market a bit more favorable for buyers than it was in the fall, and some are starting to return. Mortgage-purchase applications were up 4.6% from a month ago and Redfin\u2019s Homebuyer Demand Index, which tracks requests for tours and other Redfin homebuying services, was up 6.5%.\u00a0<\/span><\/p>\n

\u201cQuite a few buyers have come out of the woodwork in the last few weeks as rates have fallen. Many people who were outbid on multiple homes during the buying boom want to seize this moment because they can take their time touring homes and negotiate on price and terms with sellers,\u201d said Seattle Redfin agent <\/span>Shoshana Godwin<\/span><\/a>. \u201cToday\u2019s market isn\u2019t nearly as hot as it was earlier this year, and I don\u2019t expect it to return to those levels. But it\u2019s getting warm.\u201d\u00a0<\/span><\/p>\n

The uptick in early-stage demand hasn\u2019t translated to more pending home sales or new listings. Sales aren\u2019t likely to tick up until mid-January, partly because the holiday season is typically slow, and new listings may not start recovering until spring, according to Redfin economists.\u00a0<\/span><\/p>\n

Home prices fell from a year earlier in 14 of the 50 most populous U.S. metros, half of them in California\u00a0<\/span><\/h2>\n

Home-sale prices fell year over year in 14 of the 50 most populous U.S. metros, compared with declines in 5 of the 50 a month earlier.\u00a0<\/span><\/p>\n

Prices fell 9% year over year in <\/span>San Francisco<\/span><\/a>, 6.2% in <\/span>Pittsburgh<\/span><\/a>, 5.8% in <\/span>San Jose, CA<\/span><\/a>, 4.7% in <\/span>Los Angeles<\/span><\/a>, 4% in <\/span>Oakland, CA<\/span><\/a>, 3% in <\/span>Detroit<\/span><\/a>, 2.2% in <\/span>Austin<\/span><\/a>, 1.9% in <\/span>Sacramento<\/span><\/a>, 1.8% in <\/span>Phoenix<\/span><\/a> and 1.1% in <\/span>Chicago<\/span><\/a>. They declined less than 1% in <\/span>Riverside, CA<\/span><\/a>,\u00a0 <\/span>New York<\/span><\/a>, <\/span>Seattle<\/span><\/a>, and <\/span>Anaheim, CA<\/span><\/a>.\u00a0\u00a0<\/span><\/p>\n

This marks the first time New York prices have fallen on a year-over-year basis since June 2020.\u00a0<\/span><\/p>\n

The price declines in Los Angeles, Pittsburgh and Phoenix are the biggest since at least 2015, as far back as this data goes.\u00a0<\/span><\/p>\n

Leading indicators of homebuying activity:<\/span><\/h2>\n