Housing inventory levels increased year over year for the 10th consecutive month.
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Payments of nearly $2,600 further dampen homebuying affordability.
Share of U.S. homes worth at least $1 million has fallen to 7% from 8.6% last June.
In January, inventories rose and price-growth leveled off as mortgage rates continued to decline.
Profits on typical sales increase between 45% and 51% nationwide.
Ratings agency says U.S. homes were overvalued by 10.5% in Q3.
Realtor.com report finds price growth eased to high single-digit territory in December.
Redfin says falling rates luring buyers back to the market.
Fannie Mae's monthly HPSI report showed its seventh straight month of declines, approaching a drastic low.
Redfin says a house hunter looking for a $500,000 home saw their potential total mortgage payment decrease $64,000 from July to August, but jump up $118,000 from August to September.