In November, mortgage interest rates increased compared to the same period last year, resulting in a 7.9% increase in the monthly financing costs for the average home. This means that homebuyers need to pay higher monthly payments.

Simultaneously, home prices are also on the rise. The median home price in November was $420,000, an increase of only 1% compared to the same period last year. This requires homebuyers to earn approximately $118,000 annually to comfortably afford these mortgages, an increase of $7,100 from a year ago.

There are various reasons for sellers entering the market. Last year, many sellers waited, anticipating a decrease in mortgage interest rates before selling their homes. However, they now realize that rates may rise, prompting them to complete transactions before the increase.

Furthermore, overall housing inventory remains relatively scarce compared to typical levels from 2017 to 2019 and before the pandemic. This scarcity is one of the reasons sellers are entering the market.

In this situation, homebuyers need to balance the factors of rising home prices and increasing financing costs to make informed decisions. Some may choose to continue observing, waiting for a decline in prices or financing costs.

However, predicting the future trends of home prices and financing costs is challenging, and homebuyers should make prudent decisions based on their financial situations and housing needs.