I previously covered the potential decline of the housing market close to one month ago.
Google searches for homes for sale dropped by as much as double digits in Baltimore, San Francisco, and Los Angeles during the second week of March compared to just one year earlier. Redfin agents in San Francisco, Los Angeles, Washington DC, Boston, and Seattle reported a drop in requests for homebuying help at the start of this year compared with last year. tours of homes for sale in California were down 21% as of March 31 from the first week of 2022, data from ShowingTime shows.
The average interest rate on a 30-year-fixed mortgage rose to 4.9% during the last week according to MBA.
“Fewer people are starting online home searches and applying for mortgages than this time last year, and year-to-date growth in home tours remains far below 2021 levels. An increasing share of sellers are also reducing their prices after putting their homes on the market,” wrote Redfin researchers in a report published on Thursday. “The market still feels hot, but a slowdown in online searches, home tours, and mortgage applications suggests more buyers are getting priced out.”