STARTER HOMES ARE THE FIRST DOMINO

Mortgage rates are back around 7%, and the latest local housing data shows they’re affecting some buyers much more than others.Of the six price ranges below $550,000 that I track, five experienced double-digit declines in pending demand over the last two weeks.

Four of those six segments also saw showing traffic per listing decline by an average of 19%. That has pushed available supply to roughly three months—the highest level we’ve seen all year.

But homes between $400,000 and $450,000 moved in the opposite direction. Demand in that range jumped 49%, and it now has the strongest showing traffic of any segment

In this week’s video, I explain why one segment is dramatically improving, why the lower segments are the most affected, and how that pressure could gradually move into the higher price ranges.

Watch this short video below.

https://youtu.be/N2izkL3JLJU?si=gIraelaxmzF4uXgD