Home-sale prices rose 3.2% year-over-year during the four-week period ending November 6, and while more increases are discouraging for buyers already priced-out by record housing costs, the most recent gain is the smallest recorded since July 2020, Redfin reports. As demand levels off and homebuyers adjust to 7% mortgage rates, the overall inflation rate is beginning to slow, leading some housing experts to believe that the Fed could reduce its rate increase to 50 basis points next month.
Still, despite regional price drops and a growing share of homes selling below asking price, above average home prices are bolstering inflation and keeping home sales to a minimum even as the market cools.
“This morning’s report that the overall inflation rate is finally starting to back off makes it even more likely that the Fed will slow their rate increase to 50 basis points next month,” said Redfin Deputy Chief Economist Taylor Marr. “The inflation news is already helping to bring daily mortgage rates down. However, Chair Powell has indicated that inflation would need to slow for several consecutive months before the Fed would lower its target for how high it raises rates next year.”
Advertisement
Related Stories
Build to Rent
Single-Family Rent Growth Remains Elevated, Despite Dip in Multifamily Rental Rates
Multifamily rent growth, specifically, is decelerating since its year-over-year peak of +16.3% in 2022, but in many markets, single-family rents are continuing to rise
Smart Home
How Smart Technology Can Help Homes Sell Faster
Homebuyers are actively seeking out smart features to increase their homes' resale value
Affordability
How Much Must American Renters Earn to Afford Average Rental Prices?
US rents have increased 3.6% year-over-year, pushing the amount renters must earn to afford average rents to around $80K