The U.S. housing market entered 2023 with a sense of stability following a mild price correction in the second half of 2022. Several factors like rates dropping below 6.5%, a shortage of inventory, and increased demand during the spring months, contributed to this balance.

However, just as the market was heading into the traditionally quieter fall and winter season, a familiar concern reemerged: 7% mortgage rates. Today, the average 30-year fixed mortgage rate rose to 7.61%. This resurgence of 7% mortgage rates has raised concerns about the potential for further home price declines, especially during the historically subdued fall and winter period.

Despite concerns about housing affordability due to rising rates, some economists point out that a strong labor market, characterized by a historically low 3.6% unemployment rate, may continue to support national home price growth in the face of these challenges.

In Mesa County

• There are currently 501 active homes on the market in Mesa County. This is a slight increase from 496 last week.

• The average sold price YTD is $432,670 and the median sold price YTD is $390,000.

• There have been 94 price reductions in the last 7 days.

• There have been 79 new listings in the last 7 days.

• There have been 84 pending listings in the last 7 days.

NATIONAL MARKET UPDATE

Sales of new single-family homes dipped 8.7% in August, yet they’re still 5.8% ahead of where they were a year ago. Good news for buyers, the median sales price of new homes is down 13.4% from its peak late last year.

The August Pending Home Sales index of signed contracts on existing homes slipped 7.1% from July. The National Association of Realtors noted, “Some would-be home buyers are taking a pause and readjusting their expectations.”

The national Case-Shiller Home Price Index accelerated in July after stagnating in June, and has now reached a new all-time high. The lack of supply amidst stable demand has continued to put upward pressure on prices.

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