In the second half of 2022, a housing correction picked up speed in Western markets such as Seattle and Phoenix, where home prices fell 10.4% and 16.3%, respectively, from their peak. But as the housing market moves into a typically busy spring season, that correction is losing steam.
Among the 200 largest housing markets tracked by the Zillow Home Value Index, just 38% saw a month-over-month home price decline in February, compared with 79% of markets that posted a month-over-month drop at the height of the correction in September, Fortune reports.
Why is the home price correction—which was already absent in some Northeast and Midwest markets—losing steam?
For one thing, we’ve entered the seasonal period where demand picks up. Second, inventory in March was 49.5% below levels hit in March 2019. Third, housing affordability has improved a bit over the past few months as mortgage rates came back under 7% and many markets saw home prices come down a bit.
Advertisement
Related Stories
Housing Markets
10 Luxury Housing Markets Where Prices Continue to Soar
US cities that have a high appeal for retirees see significant price increases
Housing Markets
Which US Cities Are Seeing the Most New-Construction Homes?
Texas metros top list of cities with high rates of new construction but not of cities with highest sales prices for new-construction homes
Housing Markets
5 Housing Markets That Would See a Huge Increase in Homeownership if Mortgage Rates Dropped
Spokane, Wash., would experience an 11.4% increase in affordability if rates dropped to 6%