“Rates started this year at 3%,” remarked CNBC’s Diana Olick, “so it’s no surprise mortgage applications from homebuyers are…down 39% from a year ago.”
The median listing price of for-sale homes is about 13% higher than a year ago, but price growth has been gradually slowing, and overall drops in pricing are expected in the next couple of years. Since the record-high median list price of $450,000 in June 2022, the typical asking price has dropped by about $23,000.
New listings were down 15% in early October compared to last year. This is due again to high mortgage rates; would-be sellers who also need to buy are struggling with the affordability of a trade-up home.
Active inventory is up about 31% compared to last year, although this number is still 40% below pre-pandemic months.
As for time on the market, homes are still selling more quickly than in 2019 (more than two weeks faster) but we’ve seen growth in the last several months for time on the market. Data from October shows an average increase of 7 days. “This means buyers will have more time than last year or earlier this year to think through their options before missing out,” writes Realtor.com’s Jiayi Xu.