December 5th: Real Estate Update

In the US, showing activity declined 7 percent from September to October and was down 27% from this time last year.

This is because of a combination of fewer new listings hitting the market in October and buyers continuing to struggle with affordability challenges.

As interest rates have climbed, housing affordability has gone lower and lower. Affordability is 32% less than where it was a year ago. This leads me to believe that prices will continue to go down until interest rates become more favorable. The severity of home price depreciation will be offset by sellers holding off on listing until conditions become for favorable.

In Mesa County

• There are currently 577 active homes on the market in Mesa County. This is a 3% decrease compared to last week

• The average sold price YTD $425,625 and the median sold price YTD is $385,000.

• There have been 83 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

October Residential Construction was just a smidge below September’s read, at a seasonally adjusted annual rate of $887.2 billion . This is still 8.6% ahead of a year ago, with growth focused on the multifamily sector.

The Pending Home Sales index of signed contracts on existing homes slipped in October. But the NAR sees “a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”

Homebuyers on the sidelines should note those lower rates, along with the growing active inventory (49% above a year ago) that’s giving them more choices. Plus, Case-Shiller home price gains have now decreased six months in a row.

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