As mortgage rates level off ahead of the 2023 spring buying season, sales are on the rise, but amid a shortage of for-sale housing, buyers are running into fierce competition. The typical home value fell just 0.1% from last December to January, reaching $329,542 during the first month of 2023, Forbes reports.
Sales fell for the 12th consecutive month in January, and though buyers are gaining leverage in affordable cities where housing costs are beginning to fall, sellers opting out of a correcting market are keeping inventory low and prices high.
“Sales fell for the 12th straight month, but the market is fragmenting more, giving potential home buyers leverage in certain regions and cities where prices are falling,” said Robert Frick, corporate economist at Navy Federal Credit Union. “Unfortunately, overall home prices are still increasing, though slowly, and mortgage rates ticked up in the last month while inventories remain low. So, for most potential home buyers, landing a home is still prohibitive, and we’re still waiting on lower mortgage rates and falling prices to reignite the market.”
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