[abeppu]

> Personally, I think the price is structural adjustments as people shift to remote work and that makes different houses more valuable (suburbs and exurbs have really increased quite a bit).

To back up the idea that the price changes are mostly just about mortgage rates changing:

- In California, Redfin data shows that the peak for median sale price was in April 2022, at $839,100, and now we're at $706,000 for Feb 2023. Ooh, that looks like a >15% drop in less than a year!

- But FreddieMac shows that the average 30y fixed was 5% in mid April '22, and was 6.32% mid last month. The median home with an average mortgage was signing up to pay $4504/mo vs $4379/mo last month. That's a decline of roughly 2.8%

So it seems like home buyers today are willing to pay almost as much per month as they were at the price peak, which has drawn prices down.

https://www.redfin.com/state/California/housing-market https://www.freddiemac.com/pmms