Written by Breck Hapner
The current U.S. housing market is challenging for both buyers and sellers. Housing affordability is at its lowest point since 2016. The 30-year fixed mortgage rate has risen to over eight percent, and the number of homes actively for sale has decreased by two percent compared to last year.
Home sellers are waiting out high mortgage rates, leading to a 3.2-percent decline in newly listed homes compared to last year. Also, the total number of unsold homes decreased by 3.7 percent compared to 2022.
However, the median price of homes this October remained stable compared to the same time last year, with homes on the market for 50 days on average. This marks a one-day reduction from the previous year and 16 days shorter than before the pandemic.
Housing inventory is still rising, which is highly unusual for this time of year. Normally the number of houses for sale tends to decrease in October. Could this be an early indication that home prices are about to decrease?
In other news, the Fed did not raise interest rates, and the latest job report shows a slowdown in the employment market. This development brings joy to investors and the market, and hopefully works to stabilize the economy, slowing down inflation. That being said, the U.S. housing market remains tight, expensive, and loaded with uncertainty.