US Housing Market Sees Sales Rebound But Affordability Squeeze Looms
• The US housing market is seeing some signs of improvement in sales and inventory, but home prices are still overvalued by 11.1% on average, per Fitch Ratings • 91% of US metro areas have overvalued housing markets, with prices continuing to rise through the end of 2022 • Challenges like high mortgage rates and home prices are hurting affordability, moderating the housing market recovery • Median mortgage payments rose from $2,055 to $2,134 in December as rates climbed, presenting another affordability headwind • Fitch expects nominal national home price growth to slow to 0-3% in 2023 given tight supply, but existing home sales rose 3.1% month-over-month in January