Have home prices started to slip?
The team at Altos Research released their weekly report on the housing market, and they’re starting to see prices soften in certain areas.
According to the most recent weekly data, the current market has 605,000 available units on the market. That’s up 39% when comparing this past week to same time last year. What’s driving the increase? Markets in Texas, Florida, California, Georgia, and Arizona are driving the bulk of the increase, but inventory is up almost everywhere.
However, there were only about 63,000 new listings added to the market last week. Now, that comes during a holiday weekend, but it’s a 12% dip week-over-week. That’s one of the biggest weekly dips this year.
The median price of new contracts for a single-family was at $399,000. That’s up 5% year-over-year, but the pace of increase has started to slow, and may be at or near peak for the year. Pending sale prices in Arizona and Florida are both already lower than they were at the same time last year.
Where did mortgage rates start the week?
The national average rate for a 30-year, fixed-rate mortgage dipped further on Monday, ending the day down 0.06% to 7.11%*.
The national average for mortgage rates has fully erased last week’s spike and returned to the levels they were at right after Memorial Day. The dip in mortgage rates was helped by a bond market rally that was brought on by weaker than expected manufacturing data. We’ll likely get further direction as we inch closer to jobs and employment data at the end of the week.
Where is the best buyer’s market in the country?
According to a recent article from Realtor.com, there are several markets in the U.S. that have finally moved towards a buyer’s market and homes are selling below asking price. Three of the top 10 best markets for homebuyers are in Florida.
Palatka, FL and Key West, FL finished first and second in the top 10. When asked about Palatka, near St. Augustine and Gainesville, Cara Ameer, a real estate agent with Coldwell Banker, stated, “You can find some more affordable waterfront property in this area that is well under $1 million, as well as homes in price points such as the low $200,000 to $300,000 range.”
Key West is much more affordable than it was, but it still isn’t cheap. When asked about the Key West market, Ameer stated, “The lowest-priced homes currently start just below $800,000, and these are compact—around 1,000 square feet, but it’s all about location, location, location.”
Panama City was the third Florida metro area to make the list because the median number of days on the market is 74, and home prices are starting to come down towards the national average.
* National average rates accurate as of 6/3/24 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.
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