Buyers Gain Bargaining Power, but Remain DeterredBy RISMedia Staff
The housing market offered homebuyers greater bargaining power in January, as mortgage rates fell to their lowest level in months, inventory rose, and the growth in the typical asking price continued to slow, according to a new report from Realtor.com. However, several factors like high mortgage rates and median listing prices still create obstacles in the market.
Realtor.com’s Monthly Housing Trends Report for January found that nationally, the median listing price grew by 8.1% to $400,000, up 38.1% from last year. Active listings grew 65.5%, down 43.6% from last year, and new listings fell 5.4%, down 27.1% from last year. Median days on the market rose by 13 days to 75, down 12 days from last year. The share of active listings with price reductions grew by 9.3 percentage points to 15.3%, down 0.3 percentage points from last year. Lastly, the active inventory of homes for sale grew 65.5% year-over-year, but is still 43.2% lower than it was before the pandemic. Key highlights:
“Home buying in January remained relatively sluggish as sales slowed, inventories rose, and price growth leveled off. These trends reinforce that while buyers are gaining an advantage in the market, they are still being deterred by high home prices and financing costs,” said Danielle Hale, Chief Economist for Realtor.com. “Even as inventories climb and prices moderate, homeowners have equity and advantages in the market but need to set their expectations accordingly. For renters looking to become homeowners this year our Best Markets for First-Time Homebuyers identified pockets of affordability across the country, particularly in the northeast, where they might be able to better overcome affordability challenges and find a better deal.” For the full report, including more in-depth housing metrics on the 50 largest metros, visit https://www.realtor.com/research/january-2023-data/. |
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