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Is a Buyer's Market on the Horizon?

Mar 111 min read
Market Perspective: Fast Facts About the Housing Market. Is a Buyer's Market on the Horizon?
Buyers have more homes to choose from. • February housing inventory hit a 4.4-month supply1 • New listings are up 2.4% YoY1 • Inventory grew in nearly every major market over the past year2 Home-price growth is slowing. • 10% of the 100 largest markets saw slower annual price growth in January2 o 25% saw prices ease on a monthly basis • Home prices increased 4.2% YoY in 20243 o Lower than the long-term average of 4.4% YoY Sellers are under pressure to negotiate. • 1 in 7 pending home sales were canceled in January4 • The average home is selling nearly 2% under list price5 o And taking 56+ days to go under contract (longest span in 5 years) However, affordability challenges still constrain the market. • Typical mortgage payment is up 5% YoY1* o Median mortgage payment: $2,772 o $26 short of the all-time high *Four weeks ending March 2, 2025 But recent mortgage-rate drops are attracting buyers. • Mortgage purchase applications: ↑ 9% WoW*6 • Average 30-year fixed mortgage rate: 6.63%**7 o Largest weekly drop since September o 7 straight weeks of decline *Week ending 02/28/2025 ** U.S. weekly averages as of 03/06/2025

Sources:
  1. Redfin, “Pending Home Sales Are Down 6%, But Falling Mortgage Rates Are Starting to Attract Buyers,” March 6, 2025.
  2. ICE Mortgage Monitor Report, March 2025.
  3. Statista analysis of Freddie Mac House Price Index data, March 4, 2025.
  4. Redfin, “Redfin Reports 1 in 7 Pending Home Sales Are Getting Canceled, the Highest Share During This Time of Year on Record,” February 28, 2025.
  5. Redfin, “The Typical Homebuyer Pays Roughly 2% Less than the List Price–The Biggest Discount in 2 Years,” February 12, 2025.
  6. Mortgage Bankers Association (MBA), Weekly Mortgage Applications Survey, February 28, 2025.
  7. Freddie Mac Primary Mortgage Market Survey®, March 6, 2025.
 

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