For the first time in 49 weeks, home price growth posted a single-digit gain of 9.5% for the week ending Dec. 10, down from 10.3% the week prior, Realtor.com reports. After peaking at $449,000 in June, the median list price fell to $416,000 in November, and though prices remain historically high, the most recent slowdown points toward more relief ahead in 2023.
After months of steady gains, mortgage interest rates also dipped for the fifth week in a row, falling from a 20-year high of 7.08% in late October to 6.31% for the week ending Dec. 15.
“Today’s home shoppers have the benefit of mortgage rates that are three-quarters of a point lower than early November’s high thanks to recently favorable inflation readings,” says Hale.
Yet despite these downward trends, many buyers still seem to be abstaining from market activity. So why aren’t home shoppers taking advantage of the one-two combo of slowing home prices and lower mortgage rates?
“Whether holiday cheer or a still dismal view of current housing market conditions is the bigger driver of the pullback is an open question,” says Hale.