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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 66 February 2025 J O U R N A L The need for buyers to be prepared to relocate when the time comes is further reinforced by recent and erratic decreases in mortgage rates. Many indicators of the housing market are heading closer to historical averages following the ups and downs of the previous five years. Although the number of new listings entering the market is still about 14% less than it was before the epidemic, this represents a significant improvement over the 25% shortfall in March. Similarly, total for-sale inventory is struggling to escape a deep hole that formed early in the pandemic. This is the smallest deficit since September 2020, and it is currently roughly 26% below the 2018–2019 normal. Next year should see more improvements in each of these, but once more, rate develop- ments will have a significant impact on progress. In an increasingly buyer-friendly market, those who shop for homes during the slower winter months might be able to score a bargain. From Octo- ber to November, Zillow's market heat index reveals competition for cooled houses across the country and in 36 of the 50 largest U.S. metro regions. There is less rivalry in the market, even if consumers now have fewer options than they will probably have in the spring. According to the most recent data available, the percentage of residences that sold for more than the list price fell below 28% in October, extending a declining trend that started in July. With a higher likelihood of pur- chasing a property subject to inspec- tions or repairs and a lower likelihood of being sucked into a bidding war, buyers now should find it simpler to negotiate from a position of safety than they did during the spring rush. LOCK-IN EFFECT FUELING AMERICANS' HESITANCY TO LET GO OF THEIR HOMES A third of American homeown- ers (34%) say they will never sell their house, while another 27% say they won't think about doing so for at least 10 years. According to a recent survey that Redfin commis- sioned, that is. Only 8% of homebuyers intend to sell in three to five years, and 7% within the following three years, whereas nearly one-quarter (24%) of them aim to sell in five to 10 years. When compared to younger homeowners, senior homeowners are Metro Area* Zillow Home Value Index (ZHVI) ZHVI Change, Year over Year (YoY) Share of Listings Sold Over Asking Price (October) Inventory Change Since Before the Pandemic New Listings Change Since Be- fore the Pandemic Median Days to Pending U.S. $358,761 2.3 % 27.8 % -26.3 % -13.5 % 28 New York $680,934 7.0 % 51.3 % -54.6 % -35.4 % 32 Los Angeles $956,130 4.5 % 44.1 % -27.7 % -27.0 % 24 Chicago $323,596 5.0 % 34.7 % -47.7 % -10.1 % 19 Dallas $368,995 -0.5 % 16.8 % -1.3 % -12.3 % 36 Houston $306,412 0.4 % 14.8 % -3.0 % -3.2 % 39 Washington $570,857 4.1 % 40.7 % -39.4 % -18.0 % 16 Philadelphia $364,488 4.5 % 39.9 % -44.2 % -12.7 % 14 Miami $485,481 1.4 % 8.9 % -7.4 % -8.4 % 53 Atlanta $379,029 0.6 % 19.3 % -5.8 % -20.4 % 42