{"id":75689,"date":"2023-01-19T12:02:37","date_gmt":"2023-01-19T20:02:37","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=75689"},"modified":"2023-01-19T13:11:08","modified_gmt":"2023-01-19T21:11:08","slug":"housing-market-update-home-prices-increase-some-buyers-return","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-update-home-prices-increase-some-buyers-return\/","title":{"rendered":"Housing Market Update: Home Prices Post Small Increase as Mortgage-Rate Drop Attracts Buyers"},"content":{"rendered":"

An increase in home searches and tours at the end of 2022 is starting to translate into purchases as mortgage rates fall. Mortgage applications are up 25% and the slowdown in pending sales is easing.\u00a0\u00a0<\/span><\/i><\/p>\n

The median U.S. home-sale price increased 0.9% from a year earlier to $350,250 during the four weeks ending January 15, the biggest increase in a month.<\/span><\/p>\n

Prices remain elevated because buyer activity has started to pick up as mortgage rates decline due to slowing inflation. Average mortgage rates dropped to <\/span>6.15%<\/span><\/a> during the week ending January 19, their lowest level since September. Pending home sales fell 29% year over year\u2013a significant decline, but the first sub-30% drop in three months. Mortgage-purchase applications rose<\/span> 25%<\/span><\/a> from the week before during the week ending January 13, a jump that\u2019s likely to lead to more pending sales in the coming months.\u00a0<\/span><\/p>\n

As demand inches back, some homeowners are less reluctant to sell. New listings of homes for sale fell 20% year over year during the four weeks ending January 15\u2013but that\u2019s the smallest decline in two months.\u00a0<\/span><\/p>\n

\u201cThe people who started browsing homes online and scheduling house tours at the <\/span>end of 2022<\/span><\/a> are now turning into actual homebuyers,\u201d said Redfin Deputy Chief Economist Taylor Marr<\/a>. \u201cLow competition, falling mortgage rates and seller <\/span>concessions<\/span><\/a> are bringing some buyers back to the market. That\u2019s helping keep national home prices afloat, which is one bright spot for sellers. But many buyers are still sitting on the sidelines and demand could dip back down if inflation\u00a0 declines slower than expected or mortgage rates rise again.\u201d<\/span><\/p>\n

Home prices fell from a year earlier in 18 of the 50 most populous U.S. metros<\/span><\/h2>\n

Home-sale prices fell year over year in 18 of the 50 most populous U.S. metros during the four weeks ending January 15. By comparison, 20 metros saw a price decline during the prior four-week period and 11 metros saw price declines a month earlier.\u00a0<\/span><\/p>\n

Prices fell 10.1% year over year in <\/span>San Francisco<\/span><\/a>, 6.7% in <\/span>San Jose<\/span><\/a>, 5.5% in <\/span>Austin<\/span><\/a>, 4.3% in <\/span>Detroit<\/span><\/a>, 3.8% in <\/span>Seattle<\/span><\/a>, 3.7% in <\/span>Phoenix<\/span><\/a>, 3.4% in <\/span>Sacramento<\/span><\/a>, 3.1% in <\/span>San Diego<\/span><\/a>, 2.8% in <\/span>Anaheim, CA<\/span><\/a>, 2.5% in <\/span>Chicago<\/span><\/a>, 2.4% in <\/span>Los Angeles<\/span><\/a>, 2.3% in <\/span>Oakland, CA<\/span><\/a> and 2.2% in <\/span>Boston<\/span><\/a>. They fell less than 2% in <\/span>Riverside, CA<\/span><\/a>, <\/span>Portland, OR<\/span><\/a>, <\/span>New York<\/span><\/a>, <\/span>Newark, NJ<\/span><\/a>, and Las Vegas.\u00a0<\/span><\/p>\n

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