In November, there was a surge in new listings and pending home sales, reaching the highest level in about a year. This was driven by a decrease in mortgage rates and a growing agreement between buyers and sellers on prices. However, despite these positive trends, the rate of deals falling through is at an all-time high due to ongoing economic uncertainty. Additionally, certain metropolitan areas are still experiencing price declines.
Shay Stein, a Redfin Premier real estate agent in Las Vegas, stated that buyers and sellers are adapting to uncertainty. They have come to realize that predicting when mortgage rates will return to 5% is impossible. As a result, they are taking action now to be closer to their grandkids, fulfill their dream of living in an RV, or finalize their divorce.
Although rates have not reached 5% yet, they have decreased in recent weeks. This has motivated buyers, as their monthly payments are now $200 lower compared to three weeks ago when they began their search. The average 30-year-fixed mortgage rate declined consistently throughout November, ending the month at 7.22%. Currently, it stands at 6.95%, which is still higher than the 6.3% rate from a year ago.
In November, pending home sales increased by 2% compared to the previous month, reaching the highest level in a year on a seasonally adjusted basis. However, they experienced a slight 0.1% decline compared to the same period last year.
Version 1: According to Stein, sales are on the rise due to the fact that buyers and sellers are now on the same page. In the past, sellers struggled to comprehend why they couldn’t fetch $20,000 more than the listed price, just like their neighbor did during the homebuying frenzy caused by the pandemic. However, they now realize that in order to sell their homes, they must set a fair price and, in certain instances, provide concessions to the buyers such as covering closing costs or reducing mortgage rates.
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