The housing market continued to rebound globally in December as affordability challenges dampened demand for checks, the latest Zillow® information. In Metro Phoenix, the December Zillow Home Value Index stood at $437,703. The monthly mortgage rate in Metro Phoenix (at 20% down) is $2,225. That’s a 53.1% increase in monthly mortgage rates every year.
Domestically, falling mortgage rates pushed prices down, and many key indexes approached their all-time highs. late in the year.
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Buyers should appreciate that the price list reflects the purchase price and even expectations on the buyer’s part. right Just over a quarter (28%) of homes nationwide sold above their original list price in November (the most recent data).
This is the lowest level since June 2020, when the housing market was just getting over the initial shock of COVID-19 and starting to heat up, but it is still higher than the 21% that sold. on the price list in November 2019. Metros and high share. Homes selling at list prices are the most affordable: Buffalo (63%), Hartford (57%) and Milwaukee (48%).
“The housing market ended 2022 in a deep freeze, but there are some greens that are pushing up,” said Jeff Tucker, senior economist at Zillow. “The recent meltdown in mortgage rates has begun to attract renewed interest from buyers, and home sales are up again compared to last year. If the prices continue to go down this spring and the buyers return to the annual period, the housing market could have a normal – maybe boring – year.
Average time on market – how long a listing waits before it goes on sale – is now 30 days. A milder environment than last December’s 13 days is pending with a six-day low seen in the past two springs. , but that’s much faster than the 43-day wait before the outbreak, in December 2019.
White-hot Western homes in 2021 took longer to sell: 68 days in Austin, 57 days in Las Vegas and 55 days in Phoenix. Meanwhile, the fastest growing markets are the cheapest; Hartford, Cincinnati, Kansas City and Columbus all saw waiting lists of two weeks or less.
Monthly mortgage rates are just under $1,800 for a typically priced home after a 20% down payment, a drop of more than $100 from the peak in October. But wages are 62% higher than last December and $875 higher than December 2019. These cost-effective challenges are pulling demand down from the highs previously seen during the pandemic. Sales in November measured by Zillow’s nowcast fell 33% year over year and 16% compared to 2019.
The number of studies based on traditional pre-diagnostic methods is decreasing and is growth over the past year has risen from a 26% decline in the year to January 2022 to now 16% over the previous year.
But the recovery of data is driven by falling sales, not the addition of new listings. The high but falling mortgage rates may convince current homeowners to hold on to their properties until the spring sales season. December is usually the slowest time of year for sellers to list, but new additions in December were significantly lower than in 2019, and new listings for sales lost ground in the last year for eight consecutive months.
National average listings have slipped for three straight months at closing 2022but at $1,981, they are still up 7.4% year over year.
Zillow will release a new Zillow Home Value Index, based on more accurate neural Zestimate® modelin next month’s report.