US Home Prices See Modest Decline, Making Now a Good Time to Buy
For the first time in months, US home prices have started to fall, with January marking the sixth consecutive month of declines. According to new data from Zillow, the typical U.S. home is valued at $358,968, a 0.4% drop from December and a 0.2% gain compared to last year.
The decline in home prices can be attributed to two main factors: seasonal fluctuations and weak demand from buyers. "Home prices tend to peak in July and then come down," explained Mischa Fisher, Zillow chief economist. The current labor market uncertainty and rising mortgage rates are also contributing to the decrease in home prices.
With mortgage rates now hovering around 7%, significantly higher than the roughly 3% rates during the pandemic, buyers are finding it increasingly difficult to afford homes. However, with more homeowners putting their properties up for sale, there is a growing selection of homes available, making it a good time for potential buyers to start house-hunting.
In fact, Zillow predicts that 20 out of the nation's major housing markets will be more affordable this year than they have been since 2020. The firm considers homes affordable when a typical buyer can purchase a house for less than one-third of their income. Fisher noted that with more homes being listed, buyers will now have "more to choose from and can afford more."
While other real estate forecasters like Realtor.com are predicting another decline in home prices in 22 of the nation's largest cities, Zillow's data suggests a slightly different story. With the current market trends, it may be worth considering starting your house-hunting journey now.
For the first time in months, US home prices have started to fall, with January marking the sixth consecutive month of declines. According to new data from Zillow, the typical U.S. home is valued at $358,968, a 0.4% drop from December and a 0.2% gain compared to last year.
The decline in home prices can be attributed to two main factors: seasonal fluctuations and weak demand from buyers. "Home prices tend to peak in July and then come down," explained Mischa Fisher, Zillow chief economist. The current labor market uncertainty and rising mortgage rates are also contributing to the decrease in home prices.
With mortgage rates now hovering around 7%, significantly higher than the roughly 3% rates during the pandemic, buyers are finding it increasingly difficult to afford homes. However, with more homeowners putting their properties up for sale, there is a growing selection of homes available, making it a good time for potential buyers to start house-hunting.
In fact, Zillow predicts that 20 out of the nation's major housing markets will be more affordable this year than they have been since 2020. The firm considers homes affordable when a typical buyer can purchase a house for less than one-third of their income. Fisher noted that with more homes being listed, buyers will now have "more to choose from and can afford more."
While other real estate forecasters like Realtor.com are predicting another decline in home prices in 22 of the nation's largest cities, Zillow's data suggests a slightly different story. With the current market trends, it may be worth considering starting your house-hunting journey now.
the whole concept of affordable housing just got flipped on its head when u think about it
. mortgage rates are still kinda high tho 
, but i guess thats just part of the game. at least theres more homes out there on the market now, so buyers got some options 
. plus, if u r in a smaller city or somethin, ur chances of affordin a house might actually be pretty good 
. gotta keep an eye on it tho, wont know how long this trend lasts 
and it's like, more homes r being listed on the market so buyers got more options 
. yeah i know some people are worried bout mortgage rates but 7% is still pretty manageable 
How much of a person's income is really supposed to go towards a mortgage?
. And have you seen the interest rates in some of these housing markets? Like, really high. How's that supposed to make buying a home any more affordable? 
. I mean think about it, everyone wants to buy and own a home, and with all the people saving up, they're just gonna keep driving prices up. And with the whole remote work thing, people can live anywhere now, so I don't see any decline in demand at all 
. Plus, with more homes on the market now, there's actually some actual selection for buyers 
. Maybe it's finally time for me to start looking too...
zillow predicting that 20 major markets will be more affordable this year? yeah let's take advantage of it!!! 
gotta be careful tho, rates r still kinda high 
it's like everyone's trying to sell their homes ASAP. but yeah, with mortgage rates at 7%, it's definitely making buying more affordable 