The fall season has traditionally been the best time to buy a home, but this year’s house hunters are up against soaring inflation, rising interest rates, and economic volatility. While skyrocketing mortgage rates and home prices create new affordability obstacles for fall buyers, year-over-year price growth is slowing, meaning that a long-awaited housing correction is in full swing, Realtor.com reports.
As buyers lose their purchasing power, home prices are beginning to fall from their June peak of $450,000, and slower demand also means that more for-sale homes are popping up on the market.
High mortgage rates and home prices do amount to some sort of consolation prize for buyers: a wider selection of homes on the market.
For the week ending Oct. 8, overall housing inventory grew considerably, up by 31% over this same week last year.
“After a period of unusually hot activity, financial conditions are cooling demand in the housing market,” says [Lawrence] Xu. “There are substantially more homes for sale compared to one year ago.”
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