As mortgage rates level off ahead of the 2023 spring buying season, sales are on the rise, but amid a shortage of for-sale housing, buyers are running into fierce competition. The typical home value fell just 0.1% from last December to January, reaching $329,542 during the first month of 2023, Forbes reports.
Sales fell for the 12th consecutive month in January, and though buyers are gaining leverage in affordable cities where housing costs are beginning to fall, sellers opting out of a correcting market are keeping inventory low and prices high.
“Sales fell for the 12th straight month, but the market is fragmenting more, giving potential home buyers leverage in certain regions and cities where prices are falling,” said Robert Frick, corporate economist at Navy Federal Credit Union. “Unfortunately, overall home prices are still increasing, though slowly, and mortgage rates ticked up in the last month while inventories remain low. So, for most potential home buyers, landing a home is still prohibitive, and we’re still waiting on lower mortgage rates and falling prices to reignite the market.”
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders