Data released by Redfin on Friday showed mortgage applications up 2% from the previous week, its fourth week of growth, and purchase applications up 19% from the previous month.
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Homebuyers are returning to the market as mortgage rates and home prices gradually decline, according to new data released by Redfin on Friday.
Mortgage applications increased every four weeks in the period to 26 March. Redfin Homebuyer Demand Index, the brokerage firm’s in-house measurement of buyer demand. Over the past month, the index has jumped to his highest level since May 2022, signaling a surge in activity as the spring home-buying season kicks off.
“My phone is ringing. Mostly first-time buyers or investors,” San Francisco Redfin agent Ali Mafi said in a statement. “First-time buyers are interested in considering homes as prices are falling, despite concerns over high mortgage rates. Investments that can pay with cash. Homes are eyeing San Francisco’s luxury condos because their prices are significantly lower than the overall market.”
Buyer activity is increasing month by month, but home sales are below last spring’s levels. Data from the National Association of Realtors showed pending home sales in February fell 21.1% year-over-year, but have increased for the third consecutive month.
Existing home sales also surged in February, rising 14.5% after 12 straight months of decline. However, sales remained 22.5% below his 2022 level.
Redfin reports that extreme low inventories have led to price declines in some parts of the country and rises in others, resulting in an uneven distribution of price declines across the country. I understand.
Prices fell in 28 of the 50 most populous US cities, with the biggest drop in Austin, down 15.2% year-over-year. Austin was followed by his four cities in California, with San Jose at 12.9%, San Francisco at 11.7%, Sacramento at 11.4% and Oakland at 10.8%.
In line with the recent trend of home prices falling in the West and rising in the East and Midwest, Milwaukee saw the most price gains, up 14.1% year-on-year, followed by Fort Lauderdale, at 8.5%. Virginia Beach was 6.9%. West Palm Beach is 6.7% and Providence, Rhode Island is 6.4%.
“Prices are still rising rapidly in some locations, while the big tech hubs are seeing double-digit declines, so consider buying,” Taylor Marr, deputy chief economist at Redfin, said in a statement. It is important that prospective buyers work with local experts.” “One thing that is true almost everywhere, he says, is that finding attractive, affordable homes for sale is difficult, so our offer and negotiation strategies vary depending on where we are looking.”
The national median home sale price fell 1.8% year-over-year to $360,500 in the week ending March 26.
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