San Antonio followed by Oakland and Jacksonville, following with the biggest drop in property prices.
In September 2023, home prices had previously fallen in the same number of metropolitan areas.
“As many house hunters are retreating, home prices have fallen in many major metros and price growth is slowing nationwide.
“Home tours are slowing down, mortgage buying applications are declining, and Redfin agents in many parts of the country are reporting that they are extremely wise amidst high housing costs and widespread economic uncertainty.”
San Antonio, Texas, recorded the biggest decline at 3.7%, followed by Oakland, California (3.5%) and Jacksonville, Florida (2.2%).
The new list will increase by 9.6% per year, boosting inventory.
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However, the median monthly home payments are $2,848, just $8 more than the all-time high. Furthermore, the mortgage rate has risen from 6.62% to 6.83% in just one week. Combined, they discouraged buyers from the market.
Redfin says that mortgage rate jumps are due to factors such as a recession and increased likelihood of economic instability, which is blocking future buyers.
The company’s agents said they report that most of the activities they currently see in the housing market comes primarily from sellers.
“No matter what’s going on in the world, there are always people who need to buy or sell their homes. But there’s so much uncertainty in the economy that it’s time for these buyers and sellers to be more strategic than ever.”
“My advice to sellers is to make the price fair for the shift market. You may need to price a lower price than your initial instinct to sell quickly and avoid concessions. On the flip side, buyers must negotiate on price and terms and shop for even more mortgage fees than usual.”
Zillow sees the combination of mortgage rise and rising home listings as a signal for potential price drops by the end of the year.
Mortgage fees
According to data from Freddie Mac, the average weekly rate for a 30-year fixed-rate mortgage has fluctuated between about 6.5% and 7% for some time.
“Buyers need to prepare to work with lenders to lock in when prices drop. Some buyers have wanted mortgage rates to close to 6%, but interest rates could range in the 6% range, at least by summer,” she writes.
Meanwhile, people are being aware of the decisions the Federal Reserve has taken to measure potential swings in mortgage rates.
President Donald Trump has criticized Fed Chairman Jerome Powell for the central bank’s lack of monetary policy easing.
