Who’s winning in today’s housing market

Plus, for crying out loud

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  March 18, 2023 | Issue #84

Good morning! This week we’re talking about bummed buyers, rental trends and the difficulties of moving. This issue of Money Moves was written by Aly J. Yale.   Bummed-out buyers Money; Getty Images Home price growth has slowed, houses are staying on the market longer and things have generally improved for homebuyers in recent months. Apparently, though, it’s not enough to garner much optimism. As Money reporter Adam Hardy recently put it, “Americans aren’t feeling good about the housing market.” The proof is in the data. Only a mere 20% of consumers say now is a good time to buy a house. That’s up from the 16% share who said the same back in October, but down considerably from its peak in October 2020, when a whopping 60% thought homebuying conditions were good. The shift comes down to increasing mortgage rates — which are now nearing 7% — and the higher monthly payments that result from them. In fact, the typical mortgage payment recently reached an all-time high of $2,563. Make no mistake, though: Buyers aren’t the only ones bummed about the current market. Only 54% think it’s a good time to sell a home. That share was 77% just 18 months ago. “Sellers are losing confidence fast,” Hardy wrote. “The current state of the housing market is leaving no one in a good position.” On home prices: Buyers and Sellers Agree: The Housing Market Is Pretty Rough Right Now On mortgage payments: The Typical Mortgage Payment Just Hit a Record High of $2,563   More time to shop Money; Getty Images One silver lining of the current housing market is that homes are sitting on the market longer, easing the pressure for buyers and giving them a little more time and leverage when shopping for a home. Currently, the average home spends about 67 days on the market — 23 days longer than they were spending on the market one year ago. The improvement’s even bigger in some metros. Here’s a look at where buyers are getting the most time to shop around: For more: Homes for Sale Are Staying on the Market Longer Now, Giving Buyers More Bargaining Power The costs of borrowing money: Current Mortgage Rates   For crying out loud Getty Images Moving is no easy feat. Not only is it costly, time-consuming and physically taxing, but it can be quite emotional, too. A new survey shows that a whopping 44% of recent movers said they cried at some point during the process. Three in four said they have regrets about their move. These regrets touch on everything from the size and location of their new place to the moving company they chose. (In fact, 14% said their movers broke something. Another 15% said they just plain didn’t like their movers). “You’d think those who managed to find a place in this market would be happy about it,” New York Times reporter Michael Kolomatsky recently wrote about the poll. “On the contrary.”   Back to the rent race? Getty Images While higher mortgage rates aren’t ideal, if they’ve kept you in the rent race a little longer, there might be something to celebrate: Waning rent prices. The median asking rent has been slowly dropping month over month. Now, it clocks in at just $1,937 — down more than $100 per month from its high in mid-2022. Rents have dropped the most in Austin (-6.5%), New Orleans (-6.4%) and Phoenix (-4%). It sounds like there could be other perks to come, too — especially once landlords can’t afford to drop rents much lower. As Redfin deputy chief economist Taylor Marr put it, landlords “may seek to lure renters with other concessions, like free parking or a discounted security deposit.” Have you seen improving conditions as a renter lately? If so, send me the details. I’d love to hear how this is playing out on the ground.   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: Winter 2023 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?   This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. Privacy Policy • Advertise With Us • We're Hiring! To stop receiving these emails, unsubscribe or manage your email preferences. Copyright ©2023 Money Group, LLC. All rights reserved. Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA