As borrowing costs fall and buying power improves, home buyers are returning to the US real estate market.
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In the first quarter, 31% of US markets saw home price declines, the biggest share in 11 years.
That’s up from 11% of markets in the fourth quarter, the National Association of Realtors said.
Meanwhile, 69% of housing markets saw home prices rise in the first quarter, down from 89% in the fourth quarter.
The slump in US home prices is becoming more widespread, with the share of markets seeing declines at the highest in over a decade.
According to a National Association of Realtors report Tuesday, 31% of US housing markets experienced declines. That’s the highest in 11 years and up from 11% of markets that saw price declines in the fourth quarter.
The beginning of 2023 saw 30-year mortgage rates fluctuate between 6.1% and 6.7%, while the inventory shortage may also have played a role in pricing.
“Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater mortgage rate sensitivity for high-priced homes,” said NAR Chief Economist Lawrence Yun.
But price declines could be short lived, he added, as inventory remains 40% below pre-COVID levels. Multiple offers are also returning, especially on affordable homes, Yun said.
Meanwhile, 69% of housing markets saw home prices rise in the first quarter, down from 89% in the fourth quarter.
Overall, the national median for a single-family home decreased by 0.2%, after having jumped 4% in the fourth quarter.