If you have been browsing homes online, you may have figured out why those cities have dropped off. According to Zillow, supply and demand both dropped in late 2022 when mortgage rates spike. Homebuyers simply could not afford homes in these big cities and flocked to lower-priced homes."Unfortunately for buyers, mortgage rates have overwhelmed these price cuts.
But even though competition is picking up as we enter home shopping season this spring, it’s a much friendlier environment to buy a home for those who can make the finances work," said Zillow data analyst Anushna Prakash. "Sellers may have missed the market’s peak, but they can still get a higher price for their homes than last year in most markets, and certainly more than they would have before the pandemic.