Home sale prices have climbed 3.4% year-over-year, while the average mortgage rate stands at 6.65%, down from recent peaks but still more than double pandemic-era lows. These high costs have put a damper on pending home sales, which fell 2.3% annually.
However, some buyers appear to be adapting. Mortgage purchase applications have hit their highest level in over two months, home tours are increasing at double last year’s rate, and Google searches for “homes for sale” have surged to their highest level since August.
Redfin agents report that buyers who can afford to purchase are acting now before costs rise further.
While high prices deter some buyers, more sellers are entering the market, giving buyers more options. New listings rose 12.7% year-over-year in March, the largest increase in 11 months.
Matt Ferris, a Redfin Premier agent in northern Virginia, said many sellers believe the market has peaked and want to cash in.
“Supply is picking up; a lot of people I’ve spoken to over the last year or two are calling, saying they’re ready to list their house,” said Ferris. “Some believe we’re at the top of the market, and they want to get top dollar for their house. Some are moving for the usual reasons: They need a bigger home, they’re retiring, or they’re relocating to a different area. And here in the D.C. area, some people are selling because they’re worried about losing their government job, or because they want to buy closer to the city due to in-office policies.”
First Time Home Buyer FAQs - Via HousingWire.com
