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There are signs Housing Market Swing to favor buyers. But renewed concerns about the economy have caused some buyers to back down.
In the benefits of home buyers, home price growth has slowed and mortgage rates have retreated from their recent peaks.
The median price of homes was $375,475 in the four weeks ended February 16, up 3.7% from 3.7% a year ago according to Redfin for real estate agency. This is the smallest growth in nearly five months.
Meanwhile, the average 30-year fixed-rate mortgage fell to 6.87% for the week ending February 13. data. This is the lowest so far, down from the latest 7.04% peak in January.
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But, “Buyers are still facing this huge affordability challenge,” said Orphe Divounguy, a senior economist at Zillow.
Mortgage applications for the week ended February 14 fell 6.6% from a week ago, according to Data from the Association of Mortgage Banks. Experts predict January home sales data (scheduled to be released on Friday) to show decline.
Apart from the relatively high costs, it is uncertain that some buyers may have a second idea about the wider economic spread, said Zhao Chen, an economist at Redfin.
“A lot of them come from the White House,” she said of the reasons why buyers are worried.
The sign of promising housing market
Experts say some factors in the housing market provide buyers with more room to negotiate prices.
First, inventory is growing as more and more homes are selling. With more options available, buyers “have more bargaining power in the market,” Divounguy said.
according to For Redfin data, there were 564,642 new home listings in January, up 1.9% from January before and 4.7% higher than the same period last year. The new home list has reached its highest level since July 2022.
Some home sellers are also lowering their asking prices. A typical home sells for 2% less than its asking price, the biggest discount in two years data.
Buyers worry about the economy and lose jobs
Experts say some buyers are reconsidering their plans given the broader economic uncertainty.
As of mid-February Thousands of workers Between multiple federal agencies and departments, President Trump’s goal is to reduce part of the administration’s workforce.
This could make people who work directly with government or connect through contract work or federal funding “tightly think there could be a big change,” Zhao said.
Zhao said: “They are worried about work security.”
“The first thing you might have to do is stick to buying a real big purchase because you’re worried about financial security,” she added.
Many of them come from the White House.
Chen Zhao
Head of Economics Research in Redfin
Anxiety doesn’t stop there – possible trade war The drastic changes in government spending may make Americans wonder “what is next?” Zhao explained.
Trump signs a presidential memorandum to formulate his plan “Reciprocal tariffs” About foreign countries. The plan allows the United States to regard non-tariff policies in other countries as unfair trade practices, guaranteeing tariffs.
For consumers, the prospect of rising prices of daily items and the potential for accelerated inflation may make them reluctant to invest in new homes.
How to browse the buyer’s market
Zhao said if you’ve been in the market for a while and have seen a home you really like, try to negotiate the price and see where it’s going.
If the seller of the home is not open to lower the asking price, see if they can pay extra fees such as closing fees or paying buyer real estate agent fees.
These may be valuable concessions.
Settlement fees are approximately 2% to 6% of the loan amount, according to Go to Nerdwallet. If you take out a $300,000 mortgage, you will first pay a closing fee of $6,000 to $18,000.
According to data analyze By Redfin.
Experts say if not, check out the new construction market – some builders offer incentives such as “internal loans” and often offer lower loan terms, such as lower interest rates.
