Both home shopping and buying activity cooled in December as consumers focused on the holidays and got out their snow shovels in many parts of the state. The number of closings was 40% lower than a year ago and there were 26% fewer listings pending sale.
Across all markets REcolorado data shows persistently high prices, which combined with higher interest rates kept affordability top of mind for home shoppers. Homes are taking longer to move out of the Active status as shoppers take their time to look at more properties.
How Sellers Are Impacted
In Fannie Mae’s December housing sentiment index, the share of respondents who said now is a good time to sell a home dropped, while the share saying now is a bad time to sell a home increased. This sentiment is supported by Recolorado data, which shows a 30%+ drop in new listings of homes for sale compared to both last year and last month. Existing homeowners may be waiting to list their properties, since many have already locked in lower mortgage rates, creating minimal incentive to sell and buy again until rates are more favorable.
What This Means for Buyers
Home sales continued to decline in December as buyer activity remains dampened by mortgage rates that are approximately twice what they were a year ago. Continue reading here: https://tinyurl.com/yc8epjrh
