Positive signs that affordability may stabilize in 2023.

Zillow, Seattle, said U.S. home values are easing down, starting to provide relief for potential home buyers facing affordability challenges. Zillow reported the typical U.S. home fell to $357,733 in November, 0.2% less than in October and down 0.5% from a peak in June. In addition, mortgage rates falling in November brought monthly costs down for the first time since July, and for only the second time in the past 19 months. 

Zillow Senior Economist Jeff Tucker said November’s news is a positive sign that affordability may at least stabilize in 2023, helping households budget and plan for housing decisions in the months and years ahead. Tucker said, “The two big questions are whether mortgage rates will continue to decline, and whether that will be enough to bring buyers back in time for the spring selling season. In the meantime, those on the prowl for a house will benefit from motivated sellers, unusual bargains and a welcome lack of competition.” The report noted, while national home value declines from peak levels have been minimal, some markets have seen significant changes.

Source: The Mortgage Bankers Association