January 20, 2023
- of The Realtor.com® Economy Team weekly video Updating gives you the relevant economic and real estate information you need to know to navigate the housing market as a home buyer, home seller or industry professional.
- This week, Chief Economist Danielle Hale discusses what the latest 2022 data could mean for next year. To begin with, inflation continues to be a key indicator and ended the year on a positive note.
- Danielle dives into how this has affected her mortgage rates as a colleague Jiayi Xu tracked in detail, which eased again this week, rising little sense of home buyers.
- Similarly, the Housing Market Index showed an increase in builders’ confidence as well total construction slowed down in December as Hannah Jones cover. Danielle highlights key statistics and their implications for both homebuyers and renters from this report.
- December sales of existing homes beat expectations despite the lower drop. A persistent cushion of home equity is giving sellers options, but the decline in sales signals that buyers are still unable or unwilling to enter.
- Looking ahead, the stalemate won’t last forever. Realtor.com’s December housing trends show that although prices nationally continued to rise, some markets saw slight year-over-year declines in median home list prices. Further, as the number of homes on the market increased, sellers were twice as likely as last year to adjust their price lower.
- And finally, Danielle points out The best markets for first-time home buyers in 2023 report published by Sabrina Speianu of The Realtor.com® Economy Team.
- Find Realtor.com® housing details and data for download at realtor.com/research. And follow us I tweet: @rdc_economicsfor real-time updates.
- I’m Danielle Hale, Chief Economist at Realtor.com®. We’re already a couple of weeks in, however let me want you a terrific begin to the brand new yr as we dive into what you must know!
- The calendar has modified, however economists are nonetheless closing the books on 2022. One of many highlights of the top of the yr is that client value inflation slowed to its lowest price in at the least a yr, each for headline measures and for the fundamental ones.
- Nonetheless, as inflation eased, customers slowed their spending. Retail gross sales decreased from November to December and had been roughly on the similar stage as inflation in comparison with a yr in the past.
- As traders weighed blended financial information, mortgage charges fell to the bottom stage since mid-September. Whereas just lately the bottom mortgage charges have barely improved homebuyer sentimentthey continue to be greater than twice as excessive as a yr in the past, and nonetheless create monetary boundaries for a lot of patrons, particularly first-time homebuyers.
- Turning to housing information, the Housing Market Index confirmed builder confidence rose for the primary time in 13 months as lower-than-expected mortgage charges boosted hopes. Though builders proceed to supply value incentives, their estimates of present and future enterprise improved in January.
- In the meantime, whole development slowed in December and in comparison with final yr each single-family and multi-family begins are down, nonetheless single-family housing begins improved in December to the quickest tempo seen since August. Particularly, there’s a giant provide of multifamily models below development, which is able to in the end assist enhance the housing provide for renters. For the third consecutive month, the variety of multifamily models below development hit a brand new all-time excessive.
- December gross sales of present houses recorded a tempo of simply over 4 million. That is down from each November and final yr, and practically on par with the early 2020 pandemic low.
- Most owners nonetheless have an necessary capital cushion this could give them a superb variety of choices if they’re contemplating a sale. Nonetheless, evaporating demand has ended the robust vendor’s market of the previous few years, and the decline in house gross sales tells us that many patrons are nonetheless unable to afford a purchase order or usually are not but satisfied that the market has tilted sufficient of their favor to maneuver ahead. The housing market is in “no man’s market” territory, as patrons and sellers stay largely at a standstill.
- Trying forward, the stalemate will not final without end. Realtor.com’s December housing tendencies present that though costs nationally continued to rise, some markets noticed slight year-over-year declines in median house itemizing costs. Additional, because the variety of houses in the marketplace elevated, sellers had been twice as doubtless as final yr to regulate their value decrease.
- Patrons will nonetheless should be cost-conscious, which proceed to eat up a big portion of their funds, however there are explanation why 2023 may provide alternatives. Renters hoping to turn out to be householders in 2023 can benefit from pockets of affordability recognized in our The very best markets for first-time house patrons in 2023that are present in all 4 districts of the nation with a big focus within the northeast.
- The small print together with our housing information can be found for obtain at realtor.com/analysis and are additionally featured in our interactive forecast at realtor.com/housingforecast. You may as well comply with us at I tweet for real-time updates.
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