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May 2024 » thefivestar.com 79 May 2024 J O U R N A L than they had in 2019 and 2012. This is true even though the value of homes in major metro areas is increasing significantly. Although these increased rates of home- ownership show that there are still options for people to own real estate even as property values rise, it doesn't guarantee that everyone will be able to achieve their dream of owning a home or that it will be without difficulties. On the contrary, many have found purchas- ing challenging in recent years due to a com- bination of rising housing prices and steadily high mortgage rates. This is demonstrated by the fact that mortgage demand has been at or close to its lowest levels in decades since the beginning of 2023. Despite this, millions of Americans own their houses, and new construction is constantly happening. Mortgage offers are being made to demographics like millenni- als and first-time homebuyers, who general- ly have less money available to them. Although navigating the current housing market isn't always simple, home- ownership isn't going away, and the United States isn't about to turn into a country of mostly renters any time soon. HOUSING PAYMENTS REACH NEW ALL-TIME HIGH T he average monthly housing pay- ment in the United States reached an all-time high of $2,721 during the four weeks ending March 24, up 10% from a year ago, according to a new Redfin study. Housing payments are at an all-time high due to the combination of high mortgage rates and growing home prices. Mortgage rates remain above 7%, while the median home-sale price is up 5% year over year to over $375,000, barely $9,000 short of the June 2023 record high. According to Redfin, many home sellers are hoping to capitalize on rising prices by listing their home. New listings are up 15%, the biggest increase in nearly three years, while the overall number of properties for sale is up 6%, the most in almost a year. Increased supply is reviving some demand, which is the primary reason price growth remains strong. Mortgage-purchase applications are up 14% from a month ago, and pending home sales are only 1% down from a year ago—representing the smallest drop since the beginning of the year. "High mortgage rates aren't deterring buyers as much as they were last year; a lot of people want to get in now before prices go up more," Miami Redfin agent Rachel Riva said. "All of my recent listings have gone under contract in under 10 days, and most of them have received multiple offers. Buyers are lessening the impact of elevated rates in a few ways: Some are making high down payments to lower their monthly payments, and some are willing to take on a high rate now in hopes of refinancing when and if rates come down." Redfin reports that there are a few indications that price growth may slow in the coming months. Nearly 6% of house sellers reduced their asking price, the largest percentage on record for March. Months of supply reached its highest level in March since 2020, when the pandemic brought the housing market to a halt, signaling that the market is rebalancing. Metros With Biggest YoY Increases in Pending Sales: 1. San Jose, CA (25.1%) 2. San Francisco (20.1%) 3. Cincinnati (11.6%) 4. Anaheim, CA (9.9%) 5. Seattle (8.2%) Metros With Biggest YoY Increases in New Listings: 1. San Jose, CA (41.8%) 2. Sacramento, CA (38%) 3. Phoenix (31.7%) 4. Las Vegas (27.3%) 5. Austin, TX (26%) New listings declined in just 2 metros: Atlanta (-6.6%) and Chicago (-2.9%). Metros With Biggest YoY Increases in Median Sale Price: 1. West Palm Beach, FL (20.7%) 2. San Jose, CA (17.6%) 3. Miami (16.1%) 4. Detroit (15%) 5. New Brunswick, NJ (14.5%) The median sale price declined in just one metro, San Antonio, TX (-0.3%).