What's Up Real Estate - Oct 13th
What’s Up with Real Estate?
National news and local views for the week ending Friday, October 13, 2023
National Real Estate News
Home prices dip
Zillow's September Home Value Index decreased 0.1% month-over-month, the first decline since February 2023. On their numbers, home prices dropped month-over-month in 32 of the 50 largest US metros. (Prices in Austin and New Orleans both dropped a big 1.4% MoM.) Are much higher mortgage rates going to hit demand enough to cause a 'double dip' in home prices this winter?
Core inflation trends down
The headline Consumer Price Index (CPI = inflation for you and me) was flat in September at +3.7% year-over-year. But the "core" CPI (which excludes volatile food and fuel prices) dropped to +4.1% year-over-year. The rate of inflation we're experiencing today is MUCH lower than it was in mid-2022 (see graph), but it's still a good deal higher than the Fed's 2% target.
Finally, some rate relief
September was ugly for the bond market and mortgage rates, with new highs hit almost every week. On October 6, the average 30-yr mortgage rate hit 7.81%, levels not seen since 2000. The good news is that rates have eased off recently, mainly thanks to public comments from various Federal Reserve officials suggesting that they've already done enough to tame inflation.
Local Market Trends
As of Friday, October 13, 2023
| Area | Median Price | Active Listings | New Listings - 5 days | Median Days on Market |
|---|---|---|---|---|
| 76085 |
$578,924
|
74
|
4 |
17
|
| 76086 |
$322,000
|
79
|
7 |
17
|
| 76087 |
$567,394
|
216
|
10 |
73
|
| 76088 |
$575,000
|
114
|
12 |
75
|
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