October 2023 Market Report: Cooling Competition With New Listing Enhancement Event

Key Points:
– Mortgage rates rose to 23-year highs in October, but it didn’t have a significant impact on housing demand.
– Home values fell in most large markets, with Austin, Minneapolis, and New Orleans experiencing the largest drops.
– New listings are trending up compared to pre-pandemic levels, indicating that sellers are becoming more comfortable with the higher rates.
– Total inventory increased, likely due to fewer sales taking homes off the market.
– Bidding wars are decreasing, with a lower share of homes sold above list price in September.
– Rent growth finally accelerated after a nearly two-year slowdown, with smaller, more affordable markets seeing the strongest growth.

Hot Take:
Despite the rise in mortgage rates, the housing market remains resilient. While home values are falling in some areas, new listings and total inventory are trending up, giving buyers more options. Bidding wars are becoming less common, and rent growth is picking up. Overall, the market is adapting to the higher rates, and buyers and sellers are finding ways to navigate the current conditions.