Has The Housing Market Bottomed? Here's What The Data Suggests - Redfin (NASDAQ:RDFN)

The U.S. housing market may have bottomed, according to some real-estate analysts, citing multiple data points.

What Happened: Housing demand was beginning to grow while the supply of homes for sale remains limited, said Altos Research CEO Mike Simonsen.

This week, available inventory dropped to 457,000, with new listings volume lower than last year at just 52,000. The result of the strong demand and limited supply was a rise in immediate sales, with buyers acting quickly on the best properties priced right.

Redfin Corp’s RDFN Homebuyer Demand Index, which measured requests for tours and services, had also gone up by 19% since October. This was also reflected in the number of newly listed homes accepting offers within two weeks of being listed — 37% of homes accepted offers, which was the highest level since July.

Multiple offers were being made around list price, Simonsen noted, and pending home sales climbed 6% this week as buyers moved quickly to secure the limited inventory.

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Despite the 26% fewer homes in contract compared to last year’s market, pending home sales had been recovering and the gap was narrowing.

The tight supply-demand reality was keeping prices stable despite higher mortgage rates, with the median home price in the U.S. at $415,000.

Indicators suggested home prices would be flat in 2023 compared to 2022. Price reductions had also been decreasing, with 33% of homes on the market having a recent asking price cut.

This indicated a recovering market and further stability in prices for 2023. With the pending home sales rate climbing as inventory falls, there are enough buyers in the market to keep prices steady despite higher mortgage rates.

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Image and article originally from www.benzinga.com. Read the original article here.