The median list of home prices in the country fell 11% from their high in the summer and sank to $350,000 in December, as per a recently released Realtor.com(r) study. While the prices were still rising approximately 8.4 percent year over year in December, it was the only time when they were up only by one digit.

December was a good month for buyers of homes on the market for real estate.

The median list of home prices in the country fell 11% from their high in the summer and sank to $350,000 in December, as per a recently released Realtor.com(r) study. While the prices were still rising approximately 8.4 percent year over year in December, it was the only time when they were up only by one digit.

Another benefit for buyers of homes is that the number of homes available nationwide has increased by nearly 50% compared to a year ago. The homes are on the market longer, allowing buyers to consider whether this is the ideal property for them instead of needing to submit an offer immediately.

This month, mortgage interest rates fell from more than 7 percent to the 6 to 6% range. Rates rising are responsible for the cooling of the housing market as many buyers could not pay the more expensive monthly mortgage payments as rates nearly doubled during the year 2022.

Prices are slowing as the booming real estate market stalls.

The higher mortgage rates ended the price hikes that caused whiplash and bidding wars at a ferocious pace that characterized the COVID-19-era property market. In the days, rates were between range of 2% to 3% range and buyers could pay for the higher costs of homes due to their relatively low monthly mortgage payments. When rates increased, mortgage payments did too, and the higher costs suddenly became unaffordable for many buyers.

This absence of buyers caused around 13.6 percent of home sellers to reduce their listing prices in December. This was up from 7.1 percent of sellers who took price cuts the previous year.

Median prices for listings fell across nine of the top 50 metropolitan areas, year-over-year in December. New Orleans saw the biggest price drop at -4.4 percent year over year in December. The next two cities were Denver (-4 percent)+ and Austin, TX (-3.4 percent).

But, “Even though prices are falling in some areas, mortgage payments are higher due to mortgage rates having been rising so much in the past year,” Hale says. Hale.

Mortgage payments for December were 59% higher than they were during December of 2021. Buyers are financially stretched by paying more than $750 per month for a median-priced home. (This assumes they deposit 20% of their income and doesn’t consider tax, insurance, or homeowners association charges.) This is much higher than increasing rents and inflation.

At the opposite end of the scale, the highest increase in the annual price of listings was seen in Milwaukee (46.2 percent), Memphis, TN (34 percent) along with Miami (20.4 percent). The two lower-cost regions, with median list prices, were $375,000 and $325,000, respectively, which is well below the national average of $400,000.

While prices continued to increase in Miami, which was among the property favorites of the pandemic, it attracted numerous companies and new residents moving to the beaches of Miami in recent years. The median price for homes within the Magic City metro area was $590,000 in December.

More homes are available for auction, but more is needed to stop the housing crisis.

Since the outbreak began and buyers fought for almost every home that came on the market, housing inventory is at a record low. When an appealing property was put up for auction, it was in contract at the weekend’s end-or if it even took all that long. But, the excitement has mostly gone away and has resulted in more available properties.

54.7 percent more houses were added, or 244,000 properties were available for sale in December than in the previous year. Although this sounds fantastic, however, it’s 38.2 percent less than the period prior to the pandemic between 2017 and 2019.

“It’s an important move in the right direction however, the market isn’t back to normal,” says Hale.

While the overall inventory of homes is growing, the number of new homes for sale was down by 21% over the month in December. Sellers aren’t willing to surrender the low-interest rates on mortgages through the sale of their homes, later having to get an additional loan with a higher interest rate to buy a new house.

“If they decide to sell their house then they’ll need to find a new place to move,” says Hale. “And it’s not an easy task for the majority of buyers.”

With the recession coming on, many potential buyers are also putting their home hunts in limbo. This has led to more homes being on the market longer, an average of 67 days, 11 days more than December 2021, adding to the urgently required housing inventory.

In the Western region of the nation, in which prices are the most expensive, there was a 110.2 percent increase in the number of homes available. Raleigh, NC, saw the biggest rise in the number of homes available for sale at 226.2 percent in December. It was followed by Nashville, TN, which was 226%, as well as Austin, TX Austin, TX at 186.6 percent. Hale states, “It’s clear buyers are retreating and sellers aren’t enthusiastic about the property market.”