Boston home prices fall for first time since 2015 MABA MassachusettsRealEstate FirstTimeHomeBuyers MassBuyerAgents

 Boston home prices fell for the first time since 2015 as buyers are taking their time deciding on a home purchase, causing homes to linger on the market longer, according to a new Redfin report. That lingering is increasing inventory, something buyers are finding very beneficial right now. During the four weeks ended Decemeber 25, 2022 the total number of homes available rose eighteen percent from 2021, the largest increase since 2015.

 According to the report, a typical home was on the market for forty days before selling. That was double May’s record low of 18 days and was the slowest sales pace since January 2021. Despite rising inventory levels, new listings fell double digits across the country. Redfin cites homes taking longer to sell, increased mortgage rates, economic uncertainties and the holiday slowdown as the cause. During the last week of December, the average thirty year mortgage rate rose to six point forty two percent.

 Redfin deputy chief economist Taylor Marr said we’ll know more about the direction of mortgage rates and whether the recent uptick in the early-stage demand will translate into sales once we’re settled in the new year. During the four weeks ended December 25, 2023 home prices fell from 2021 in seventeen of the fifty most populous U.S. metros, the report found. There was a nine percent year-over-year drop in prices in San Francisco, a six point five percent drop in San Jose, and down six percent in Los Angeles, four point five percent in Detroit, four point four percent in Pittsburgh, three point seven percent in Sacramento, three point six percent in Oakland, California, and two point three percent in Austin, Texas.

 Home prices fell two percent or less in New York, Seattle, Anaheim, California, Phoenix, Chicago, Newark, New Jersey, Riverside, California, Boston and Washington, D.C. While this marked the first time Boston prices fell since 2015, it’s also the first time prices in Washington D.C. fell since 2016. Thirty-year mortgage rates rose to six point forty two percent for the week ending December 29, 2022 marking the first increase after six weeks of declines. The daily average, according to the report, was six point fifty five percent on December 29, 2022 Meanwhile, mortgage applications were flat for the week ended December 21, 2022 and up four point six percent from November and purchase applications were down thirty six percent from 2021.

 The higher rate brought the average monthly mortgage payment on a median-priced home to $2,265, up slightly from the previous week and down $254 from its October peak. Year over year, mortgage payments are up thirty six point seven percent. Pending home sales fell thirty one point eight percent from last year, once again marking the largest decline since January 2015. During the week ended December 24, 2022 Redfin found Google searches for “homes for sale” were “on par” with November, but down twenty eight percent from last year.

 In the four weeks ended December 25, 2022 active listings rose eighteen point two percent from last year, marking the biggest annual increase since 2015. Meanwhile, new listings fell twenty point six percent from last year, one of the largest declines since the start of the pandemic. The median asking price of a home rose three percent from 2021 to $349,950, the slowest growth rate since May 2020. Meanwhile, the median sale price increased point seven percent year over year to $351,860.

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