Markets across the nation appear to be cooling off as the effects of rising mortgage rates on buyer affordability begin to set in, but housing remains in demand according to a recent real estate report by Redfin.
Looking at the report, the average monthly mortgage rate payments on the median home price have increased 45% compared to the same time last year, from an average of $1,694 a month to $2459. As a result of a decrease in buyer affordability, the average median home price has begun to decrease month-over-month. However, the median home price still increased 14% year-over-year to $399,249.
These gradual declines in buyers searching for and procuring homes across the country do indicate a subtle shift in the real estate market, though this brief subsiding in sales does not support the possibility of a major decrease in homebuyers. As mentioned by Redfin economist Daryl Fairweather, there could be going forwards a trend in subtle declines of housing sales, though also a recurring increase of homebuyers to match, all of which coincides with monthly trends which might increase as quickly as the market decreases in sales and home-buying interest.
“Buyers coming back will provide support to the housing market, but between now and the end of year I think the power will continue to shift towards buyers, resulting in mild price declines from month to month.” Exlplains Daryl Fairweather.