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That stallout in inventory growth, coupled with green shoots on mortgage costs, are the main reasons for our relatively bullish forecast of a roughly flat price trajectory in the year ahead.
One final indicator of a potential bottom for ma…
Oops broke the thread. See my profile for the mortgage chart (8). Payments are still up 66% YoY though.
One nice real-time barometer of the housing market is active inventory, which is a crude measure of "net supply". When the flow of new …
What has depressed demand so much? The affordability shock! The mortgage payment on a typical-valued home, after 20% down, at end-of-month mortgage rates, was 66% higher in November than last November. But at least that's down slightly fro…
The weaker demand also shows up in newly pending listings, our most real-time indicator of sales volume. That is down about 35% from this time last year, though that YoY decline is slightly smaller than we saw a few weeks ago, perhaps indi…
The proximate cause of falling prices is that sellers are seeing very low demand. That leaves homes stuck on the market for longer -- e.g., median days to pending is now up from 12 this time last year to 26 as of December 10. (note that is…
And while our national price index has only fallen 0.5% from its June peak, many Western markets have fallen from about 7% to 10% from their local peak values, usually in April or May of this year.
5/
But the placid surface of a national price index on, roughly, a plateau, masks tremendous variation around the country. At the moment, YoY price changes in just the top 20 metros range from -1% in SF to +23% in Miami, ranging around a nati…
Here's our year-ahead forecast, with about a 1% YoY decline in June. Some experimental, alternate versions of our price index and forecast pin the biggest YoY forecast drop, in June, closer to 4%.
3/
Our national price index basically looks like a plateau, and our forecast is for that to approximately continue in the year ahead, though I wouldn't be surprised by YoY changes anywhere from 0 to -5%; maybe -9 or -10%.
Mid-December housing market update 🧵
The Zillow Home Value Index fell again in November; prices in some Western markets have fallen 10% from their local peaks in Q2; SF and Austin prices are now down slightly YoY.
Sales activity is incre…
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