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12 HOUSING MARKET BEGINS TO RECOVER FROM NOVEMBER LOW e housing market has begun to recover after hitting a low point in the second week of November, according to a new report from Redfin. e number of Redfin customers requesting tours has improved 17 percentage points from November, and the number of people contacting Redfin agents to start the homebuying process has improved 13 points. Compared with a year ago, home tours and service requests are down 23% and 27%, but that's an improvement from November, when both were down 40%. is is already translating into more home sales. Redfin agents report that bidding wars are back in some markets, including Seattle, central Florida, and Richmond, Virginia. Homebuyer demand remains down from its early 2022 highs, but the market has shifted into a new phase and well-priced listings are selling quickly. HOMEBUYERS RETURN AS POWER DYNAMICS SHIFT TOWARD THEIR FAVOR Homebuyers have begun to acclimate to 6% mortgage rates, which may feel like a relief after watching affordability erode as rates surpassed 7% in the fall. "I've seen more homes go under contract this month than in the entire fourth quarter. Listings that were stagnant in November and December are suddenly getting one to two offers," said San Jose, California Redfin agent Angela Langone. "I'm getting texts and emails from prospective buyers now that the new year is in full swing, and the holidays are behind us. Mortgage rates aren't stopping people as much as they were at the end of 2022 now that they're down from their peak and sellers are more willing to negotiate. Some buyers are having luck winning a home for under asking price, especially if it has been on the market for several weeks, but those days may be numbered." Mortgage applications are up 28% from early November as the average 30-year-fixed mortgage rate has declined to 6.15% from its November peak of 7.08%—the largest 10- week decline since 2009. at has sent the typical homebuyer's mortgage payment down 10% (about $180) since fall. Pending home sales rose 3% in December from November on a seasonally-adjusted basis—the first month-over-month increase in 14 months. BIDDING WARS ARE BACK IN SOME MARKETS While demand is coming back in some parts of the country, homes that are eliciting bidding wars tend to be affordable, suburban, single-family, move-in ready, and priced competitively. Preliminary data on the share of Redfin agents' offers facing bidding wars points to small upticks in the Seattle and Tampa markets this month. "Bidding wars are back in Seattle," said local Redfin real estate agent Shoshana Godwin. "One of our Issaquah listings got 12 offers and is under contract for $155,000 over the $1.4 million list price. e buyer waived every contingency, handed over $300,000 of earnest money, and is letting the seller stay for free for two months after closing. Another home in Seattle's popular Ballard neighborhood was recently delisted after sitting on the market for over three months. e seller relisted it last week and it went pending in under a day." Eric Auciello, Redfin's team manager in Tampa, has seen three modest single-family homes priced around $300,000 wind up in bidding wars in central Florida this month, with 16, 17, and 23 competing offers. "Homes that are in desirable school districts, priced well, and in good condition are going off the market within days or even hours," said Richmond Redfin agent Blake Edwards. "Anything under $400,000 will sell within the weekend. Even the $1 million houses that are in great condition are selling within days. It really is property specific right now." THE MARKET FOR CONDOS AND EXPENSIVE HOMES LAGS BEHIND Condos and higher-priced homes are still a struggle to sell. Redfin agents report that sellers of expensive homes and condos are offering buyers incentives to close deals. "e condo market in Washington, D.C. has been hit hard," said local Redfin agent Marshall Carey. "Condo sellers are searching Journal