A housing slowdown? That depends on your location — and price

Plus, a 4 bed/3 bath — spelunking included

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  August 27, 2022 | Issue #57

Good morning! This week we're talking housing slowdowns, first-time homebuyers and spelunking (yes, really). This issue of Money Moves was written by Aly J. Yale. A "wildly different" housing market Shutterstock The housing market has officially turned a corner. Gone are the days of breakneck bidding wars, waived contingencies and lightning-fast sales. In their place, we're seeing a much more manageable market — one in which buyers have options, time and, most importantly, a little leverage. How do we know this, exactly? It's all in the data. Active listings are up 30%. Bidding wars have plummeted. A whopping 16% of deals are falling through. The list goes on, but the takeaway's the same: Buying a home is getting easier. Sure, mortgage rates are still above 5%, but with price cuts rising and less competition, agents tell me sellers are much more willing to negotiate these days. Some sellers are even offering to buy mortgage points (which lower your interest rate) or cover a portion of your closing costs. As Money's Sarah Hansen recently put it, "Things are finally starting to return to a pre-pandemic version of normal." For more: 4 Ways the Housing Market Is 'Wildly Different' From Just a Few Months Ago Refinancing with higher rates: Is Now a Good Time to Refinance? Hard times for first-time homebuyers The market might be in the midst of a rebalancing, but for first-time buyers — or anyone shopping for an entry-level home — the story's a little different. According to data from Zillow, homes on the lower third of the price spectrum aren't seeing as quick a slowdown as other price ranges. There are fewer price cuts, sales aren't declining as quickly, and inventory isn't rising nearly as much. "As the pandemic-fueled frenzy in the housing market begins to cool from its record-setting pace, not all types of homes are experiencing the same slowdown," wrote Zillow Economist Nicole Bachaud. "Affordability is a major concern for many potential home buyers and competition is now strongest for the least expensive homes — a reversal from much of the pandemic." Let's take a look at how the slowdown is impacting each price bracket (all numbers are year-over-year): Repairs and renovations: How to Get a Home Improvement Loan Not all markets are created equal: 10 Cities Where Home Prices Are Rising the Most It's hot, hot, hot … in the Northeast? Nashua, New Hampshire Getty Images The housing market might be cooling in most parts of the country, but in the Northeast, many cities are still going strong. That's right: According to Realtor.com, the northeastern U.S. is home to not one but eight of the nation's hottest housing markets right now. Taking the crown is Brighton, New York, where the median home price is a mere $275,000 — well below the national average of $449,000. Others on the site's "hot" list include:   Nashua, New Hampshire Worthington, Ohio Derry, New Hampshire Windham, Maine Bethlehem, Pennsylvania Johnson City, Tennessee Hooksett, New Hampshire North Attleboro, Massachusetts Auburn, Maine As Money's Leslie Cook recently explained, "The Northeast is emerging as a hotspot for homebuyers looking for charm, fresh air and affordability — as well as close proximity to the big city experience." For more: Here Are the 10 Hottest Housing Markets Now Help for homebuyers: Why a Recession Could Help Homebuyers — Plus 5 Tips for Buying During a Downturn 4 bed/3 bath — spelunking included Courtesy of Lori Largen / JBGOODWIN Realtors, Schertz Tired of the boring, day-to-day monotony? Then snap up this $875,000 San Antonio home and start exploring your very own underground caverns. No, seriously. Not only does this property boast four bedrooms, three baths, a massive deck and 2.5 acres of land, but it comes with spelunking, too. Take a look for yourself. Stalactites. Stalagmites. The whole shebang. Courtesy of Lori Largen / JBGOODWIN Realtors, Schertz I'd say it'd make a great Airbnb, but the insurance would probably be cost-prohibitive. (I imagine caverns come with quite a bit of liability!) Happy hunting, P.S. Spot a weird or unique home listing? Share it with me on Twitter, where I'm @alyjwriter, or via email at alyjyale@gmail.com. P.P.S. Have a friend who loves real estate or is looking for a home of their own? Please forward them this email or send them to the Money Moves subscription page. Money's Essential Home Buying Resources: Summer 2022 On the hunt? Check out Money's Mortgage Calculator, list of The Best Mortgage Lenders and look at the latest mortgage rates. Thinking of refinancing? Our list of The Best Mortgage Refinance Companies can help. You can also use our Mortgage Refinance Calculator or these refi tips. Key question: How much house can I afford?

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