Affordability

New Redfin data reveals that Google searches for “homes for sale” were up nearly 50% from their November low during the week ending January 7. Here’s what else the data reveals about the state of the housing market.

A group of top scientists said high inflation levels are being driven by a variety of factors, including the lingering impacts of COVID-19, the war in Ukraine, and ongoing labor shortages.

"This year's hottest markets will feel much chillier than they did a year ago," said Anushna Prakash, Economic Data Analyst at Zillow.

The typical asking price slowed to a single-digit pace for the first time since December 2021, according to the Realtor.com Monthly Housing Trends Report, marking a significant slowdown from the peak 18% year-over-year pace seen in 2022.

Joel Kan, MBA’s VP and Deputy Chief Economist, said, “The doubling of mortgage rates over the past year caused credit availability to shrink 18% during the same period. This pivot in the market resulted in lenders exiting certain origination channels to manage their operational costs or stop lending altogether.”

The 2023 mortgage market began on a positive note, as Freddie Mac reported a week-over-week slide in mortgage rates leading to an uptick in refinance apps.

A new study from Point2 revealed condo prices are much more resistant to price declines than single-family home prices, as new data shows homebuyers are moving away from increasingly unaffordable homes and opting for more budget-friendly alternatives.

Veros Real Estate Solutions’ forecast anticipates that home prices will overall turn negative and depreciate by the end of 2023— entering negative territory for the first time in more than a decade.

The MBA reports that, despite rates still in the 6% range, refinance apps increased 5% over the previous week—but are still 86% lower year-over-year.

“The housing market will continue to rebalance as prices adjust to the reality of higher mortgage rates,” First American's Deputy Chief's Economist Odeta Kushi concluded.