The residential home market continues to founder. Sales of existing homes continued to fall in December and are down by over a third since December, 2021.
What about prices? Although they are still up on a year-over-year basis, that rate of increase has fallen to just 3%. And with prices down 10% over the past six months, those annual rate of change figures will soon be negative.
Where from here? Mortgage rates have fallen a bit recently, and a low supply of homes on the market should support prices a bit. Affordability continues to be a huge drag on the market, and it appears many homeowners do not want to sell and lose their locked-in mortgage rates.