Housing Market Uncertain As Rate Hikes Persist

Mortgage News May 25, 2023

HouseCanary has published its most recent Market Pulse Report for April 2023, analyzing more than 20 metrics derived from listings and providing a year-over-year comparison. The Market Pulse is a continuous assessment of exclusive data and insights obtained from HouseCanary’s nationwide platform.

In the initial month of the second quarter of 2023, HouseCanary reports that the housing market responded to a 0.25% increase in the Federal Reserve’s nominal interest rate, leading to a decline in market activity. Despite the relatively small rate hikes, the housing market experienced year-over-year declines in both contract volume and net new listings. Additionally, the volume of net new listings remains lower than the volume of contracts, exacerbating the existing shortage of available inventory.

In contrast, after experiencing a decline in the latter half of 2022 and early 2023, listed and closed prices have undergone a significant turnaround. Prices are now showing a rapid month-over-month increase since the conclusion of February 2023.

Jeremy Sicklick, the Co-Founder and CEO of HouseCanary, acknowledged the current state of the real estate market in May 2023. He highlighted the prevailing uncertainty and identified the ongoing slowdown in the purchasing market as a prominent trend persisting for over a year. Notably, April 2023 witnessed the 12th consecutive month of year-over-year declines in both net new listings and contract volume.

The CEO emphasized that this market trend has spurred an increase in rental demand, as cautious prospective buyers are hesitant to make purchases given the prevailing conditions. Nevertheless, both buyers and sellers are eagerly anticipating the upcoming Federal Reserve meeting, as there is hope among industry experts for a potential reversal of rate hikes. Such a reversal could potentially rejuvenate market activity and contribute to a resurgence in the real estate sector.

<!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-469750017 -1040178053 9 0 511 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin-top:0in; margin-right:0in; margin-bottom:8.0pt; margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi; mso-font-kerning:1.0pt; mso-ligatures:standardcontextual;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-family:"Calibri",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} .MsoPapDefault {mso-style-type:export-only; margin-bottom:8.0pt; line-height:107%;} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.WordSection1 {page:WordSection1;} -->

Need a list of loan officers in your area? Contact Jennifer Swanson at 260-223-9203 or Jennifer@SpecialtyContactDatabases.com


Contact Us/Order Samples

For any questions OR a sample of the records please submit the following form.

Submit your comments, questions, or requests below. If you include your phone number, we will call you back.

Source:

I am Interested In: