The beginning of 2023 saw 30-year mortgage rates fluctuate between 6.1% and 6.7%, while the inventory shortage may also have played a role in pricing.
“Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater mortgage rate sensitivity for high-priced homes,” said NAR Chief Economist Lawrence Yun.
But price declines could be short lived, he added, as inventory remains 40% below pre-COVID levels. Multiple offers are also returning, especially on affordable homes, Yun said.
Meanwhile, 69% of housing markets saw home prices rise in the first quarter, down from 89% in the fourth quarter.
Overall, the national median for a single-family home decreased by 0.2%, after having jumped 4% in the fourth quarter.