The slowdown in mortgage growth affected home buyers and sellers in different ways in December, according to Zillow’s latest market report. The score was enough for buyers to navigate the winter market, but not enough for buyers to list.
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With the colder weather, December ushered in a ‘more normal’ market due to house prices and mortgage growth – a welcome sign of things to do for home buyers waiting for the their opportunity to get out of the country.
“The housing market ended 2022 in a deep cold, but there are some greens that are pushing up,” said Zillow Senior Economist Jeff Tucker about the company’s latest report on Thursday. “The recent meltdown in mortgage rates is beginning 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 will likely have a normal – maybe unpleasant – year,” he added. from here.
In the last months of the year, the truly an emerging market This was evident when more than half of home buyers (52.9 percent) sold their homes below the rental price. Meanwhile, the proportion of homes sold above market value fell to the lowest level since 2020 (27.9 percent) – meaning that about four of the buyers received a they are right.
It also shows the increase in the number of buyers in December on the market, which increased by 130 percent year-on-year from 13 days in 2021 to 30 days in 2020 .That’s faster than the previous average of 43 days, Zillow said, but it’s still there. marking a major shift in the market.
The slowdown in sales has put a strain on product sales, with annual sales falling from 26 percent to 16 percent from January to December 2022. However, this reduction can be extended as some home buyers are removed from the market as evidenced by four A year-low of 168,000 new listings came on the market in December.
Tucker said mortgage rates will continue to be the main driver of housing projects in 2023, with a slight decrease in prices to encourage some buyers to lock in savings. Monthly mortgage payments for a home buyer who offered 20 percent down on the home’s original value ($356,819) were reduced by $100 month-over-month to $1,800 – buying the property for more than the mortgage. for the average American to pay $ 1,981 per month in rent.
However, lower mortgage rates are not enough to get home buyers moving, as they are likely to have less than 30 years worth of mortgages. currently at 6.914 percent.
“Remaining high mortgage rates may convince current homeowners to hold on to their properties until spring sales,” the report said.