It’s been a rough year for homebuyers. Mortgage rates have soared, while housing inventory has dwindled.
Millions of buyers have been priced out of the market. And other shoppers who can afford the elevated prices simply cannot find a home.
But this Thanksgiving, homebuyers actually have some things for which to be grateful. Redfin notes that a few trends are now turning in favor of homebuyers.
Here are the positive developments buyers can celebrate as November comes to an end.
Lower mortgage rates
On Wednesday, the daily average 30-year fixed mortgage rate dipped to 7.32%, according to Redfin. That was down from 7.58% a week earlier and marks the lowest rate since mid-September.
The weekly average 30-year fixed rate — 7.29% as of Wednesday — is down for the fourth consecutive week. One month earlier, it reached a two-decade high of 7.79%.
If you are in the market for a home loan, stop by Money Talks News’ Solutions Center and search for a great mortgage rate.
New listings totaled 73,891 for the four weeks ending Nov. 19. That is a jump of 5.2% year over year, and it represents the biggest increase in inventory in more than two years.
The supply of homes for sale stands at 3.7 months, a rise of 0.1 point from the same time last year. Redfin notes that four to five months of supply makes for a balanced market. So, although things are improving for buyers, housing remains a seller’s market.
Demand for homes is dropping, according to multiple key metrics, Redfin says.
As of the week ending Nov. 19, the Redfin Homebuyer Demand Index was down a seasonally adjusted 3% from one month prior, and down 7% year over year. The index measures requests for tours and other services from Redfin real estate agents that are related to buying a home.
Google searches for the phrase “home for sale” also fell 11% month over month as of Nov. 18. Such searches are down 7% year over year.
Finally, touring activity has fallen sharply. As of Nov. 20, it was down 23% from the beginning of 2023.
All of this means today’s homebuyers might face less competition from others looking for homes compared to what they would have encountered earlier in the year.
More price drops
The share of homes for sale with price drops is now 6.5%, an increase of 0.2 points year over year. That means more sellers are willing to cut their asking price in order to get the home sold.
As more homes go up for sale, buyers should discover that they have more leverage when negotiating a deal.
For more on markets where buyers are gaining the upper hand, check out the “7 Places Where Most Home Sellers Are Giving Concessions to Buyers.”