Home Values Fell Slightly in November, but Would-Be Buyers Kept Their Distance

Home values fell 0.2% from October to November as elevated interest rates continued to put a dent in homebuyer demand, forcing sellers to offload homes at lower prices after weeks without offers. Despite consecutive monthly gains throughout much of 2022, mortgage rates trended lower in November, bringing typical mortgage payments down 4.8% from the end of October, Zillow reports.

While formerly red-hot markets like San Jose, Raleigh, and Phoenix saw the most significant price declines of (-3.3%), (-2.5%), and (-1.6%), respectively, Florida continued to post the highest year-over-year home value appreciation in Miami (+22.8%), Tampa (+18.2%), Orlando (+17.6%).

While buyers are evidently hoping for better prospects in the New Year, many would-be sellers are sitting out the market till then as well. New listings fell 25.4% year-over-year in November, the biggest such decline since April 2020, when the market froze up at the start of the pandemic. That reduced flow of new listings is being more than matched by a reduced flow of newly-pending listings, which fell 38% below year-ago levels, an even steeper drop than the low-tide mark of a 35.7% annual decline in April 2020.

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