Market Studies

According to a new report from Redfin, some homebuyers are resuming their search as home prices and mortgage rates dip.

Marking a shift from 2021's leaders from the West Coast, a new Zillow study of the nation’s most searched markets found the town of Prairie Village at the top of its popularity rankings with site-leading page views of for-sale listings per day.

“Now that home prices have plateaued and even declined in some markets, buyers are faced with mortgage rates that have doubled, making home purchases even less affordable,” said Rick Sharga, EVP of Market Intelligence at ATTOM.

According to a new report from the Mortgage Bankers Association, mortgage payments have increased by 42.9% in the first eleven months of the year.

“Today’s affluent homebuyers are motivated to pay in cash because the surge in mortgage rates makes them want to avoid loans—and the high monthly interest payments that come with them—altogether,” said Redfin Economics Research Lead Chen Zhao.

While the market continues to moderate, existing home sales slipped nearly 8% from October and 35.4% from the previous year, according to the National Association of Realtors.

The MBA reports that the downturn in mortgage rates has triggered homebuyer interest, as overall app volume has increased for the second consecutive week, and refinance activity rose 6% week-over-week.

Reaching their lowest point of the year, new listings dropped 21.4% from October, while home sellers also saw median sales price slip, though numbers remain nearly 4% higher than November 2021.

"The rising popularity of outdoor features suggests the pandemic has changed the way we want to live for good, priming the backyard for a 2023 evolution," said Amanda Pendleton, Zillow's Home Trends Expert.

Fannie Mae’s Economic & Strategic Research Group now forecasts recessionary conditions taking a hold of the market during Q1 2023, even after forecasting better fourth-quarter numbers due to strong GDP and personal consumption figures.