Have we started to see significant price cuts for available homes?

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What does the latest housing market data say?

The weekly housing market report from Altos Research was just released, and, according to the data, we’re seeing home prices continue to cool off.

The percentage of properties with recent price reductions was up 7/10ths of a point comparing this week to last. That puts the percentage of listed properties with recent price cuts at 34.4%. That’s over 4% higher than the same time last year and may signal that the market is starting to adjust to where buyers are buying homes.

When it comes to home prices, the median home price of single-family homes in the U.S. is $429,000. This is virtually unchanged from each of the last two Spring homebuying seasons and represents the top of the market. What’s interesting here is the peak has come a few weeks earlier than it did in either of the last two years.

If the trend holds, we may see home prices cool off quicker than the previous years, and potentially end the Fall lower than 2022 or 2023.

What are experts saying about the future of mortgage rates?

Freddie Mac recently released a report that provided updated guidance on how their economists see the housing market playing out over the rest of 2024.

Released on Thursday, the report stated, “We expect mortgage rates to remain elevated through most of 2024. These high interest rates will prompt prospective buyers to readjust their housing expectations, but we anticipate housing demand to remain high due to favorable demographics, particularly in the starter home segment.”

Mortgage rates have come down off their recent peak, but most experts agree that it’s going to take movement by the Fed to see rates cool off. However, we have seen weakness in home prices start a bit earlier, and that may be the path to relief for prospective homebuyers.

Are the fastest growing cities in the U.S. affordable?

A recent report compiled by Realtor.com detailed the fastest growing metro areas in the U.S. and looked into the prices of homes.

Chief economist Danielle Hale stated, “The list of fastest-growing cities includes a lot of smaller cities that are not likely to be on many people’s radars. Smaller areas often top these lists because their smaller size makes it easier for them to see large percent changes.”

Texas claimed the first four spots on the list of the fastest growing cities, but only Princeton, TX has a median home price below $375,000.

When it comes to the most affordable growing cities, Leesburg, FL and Athens, OH came in at 14th and 15th place, and offer lowest median home prices. The median home price in Leesburg is $329,250, and Athens is only $315,000.

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