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Multiple bids on Day One might be a thing of the past, but high mortgage rates, limited inventory and eroding affordability are still forcing buyers to make most of the compromises.

“They are looking for smaller homes compared to what they were in the market for last year,” says Heather Mahmood-Corley Mahmood-Corley, a Redfin real estate agent in Phoenix. “They’re having to go farther out from the town center so they can afford more of what they want.”

Items on the “must-have list” have also fallen by the wayside.

No more pools. Forget the extra bedroom.

For others, it’s cramped their lifestyle.

“I have had clients tell me they will not be eating out as much,” she says. “The new car purchase is on hold.”

So far, higher rates have not caused home prices to fall, at least not by much. While prices are down from their summer 2022 peak levels across much of the country, the National Association of Realtors reported that the January median home price nationally was up 1.3%, compared to a year ago. In some local markets, prices are still rising at near double-digit rates.