A housing correction is tapering off at the start of 2023, and after months of falling home prices, the majority of the nation’s 200 largest housing markets are once again seeing prices rise. An updated analysis of Zillow Home Value Index data revealed that just 23% of those markets saw a month-over-month home price decline in March, compared with 79% of markets that saw price declines at the height of the housing correction in September 2022, Fortune reports.
The largest monthly home price increase was in Scranton, Pa., where homebuyers noted a 1.52% gain, while the largest monthly decrease (1.27%) took place in San Jose, Calif.
However, heading into 2023, that free-fall in transactions has stopped while price corrections are waning.
What happened? The average 30-year fixed mortgage rate came down a bit, from 7.37% in early November to 6.50% as of Friday, just as we entered the seasonal spring period when housing demand increases. Additionally, some house price decreases, coupled with inventory remaining tight, has helped to stabilize the housing market in many parts of the country. Cue fewer home price cuts.
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