December 12th: Real Estate Update

Home prices are falling; even though buyers still outnumber sellers in most areas, per 1000+ resale agents John Burns surveyed in November. I interpret this to mean there are plenty of buyers. They just want/need a better deal.

With a lot of talk about building material prices going lower, it's interesting to see that almost all of the segments are actually up double digits in price. As affordability challenges push new construction prices lower, builders are going to see their margins continue to shrink.

In Mesa County

• There are currently 557 active homes on the market in Mesa County. This is a 3.5% decrease from 577 last week

• The average sold price YTD $425,681 and the median sold price YTD is $385,000.

• There have been 72 price reductions in the last 7 days.

• The average DOM for the active homes is 65

Last Weeks New Listings

Last Weeks Sold Listings

NATIONAL MARKET UPDATE

Fannie Mae’s Home Purchase Sentiment Index (HPSI) reversed course in November, posting a modest gain. The survey noted, “Consumers continue to expect mortgage rates to rise but home prices to decline.”

However, those mortgage rates have actually been falling. Freddie Mac’s Chief Economist noted that over the last four weeks, mortgage rates have seen “the largest decline since 2008.”

Home price gains are moderating. Real estate data firm CoreLogic reports: “Home price growth continued to approach single digits in October.” They forecast home prices up only 4.1% annually by October 2023.

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