Many sellers retreated amid falling prices, stagnant mortgage rates

In the year New homes for sale fell 15% year over year in the four weeks ending Aug. 21, the biggest annual decline since the pandemic began. As a result, the supply of homes for sale fell 0.6% over the previous four-week period — a slight decrease, but the second such decline since February, according to a new report from technology-based real estate brokerage Redfin. .

The lack of homeowners putting their homes up for sale is a response to declining demand and falling prices as there are fewer buyers in the market due to rising mortgage rates and economic uncertainty.

Those who are listing their homes are starting to offer prices commensurate with the low demand. The median price of newly listed homes is down 5% from a record high in May, and sales prices are down 6% from a record high in June. After rising in the spring and early summer, the share of discounted homes for sale has increased.

“Variable mortgage rates are helping sellers because they have reduced demand. Some sellers are cutting prices, and some homeowners are staying put because they can’t get a good deal or are reluctant to give up their low mortgage rates,” said Chen Zhao, head of research at Redfin Economics. Capacity is reaching the limit. It’s worth noting that pre-demand indicators, such as visits and requests for help from agents, remain high and will remain high from June’s lows. So there is a pool of interested buyers out there, but sellers need to price them right to attract them. More If sellers and buyers find that middle ground on price, we could see the selloff strengthen a bit.

Leading indicators of home buying activity:

  • In the year The 30-year mortgage rate rose to 5.55 percent in the week ending Aug. 25. This is down from 5.81 percent in 2022, but up from 3.22 percent earlier in the year.
  • Fewer people are searching for “homes for sale” on Google. Searches in the week ending Aug. 20 were down 16 percent from a year earlier, but up 12 percent from the end of May.
  • Redfin’s seasonally adjusted homebuyer demand index—inquiries for home tours and other home-buying services from Redfin agents—fell 12 percent year-over-year in the week ending Aug. 21. But in the year June.
  • According to home guide technology company ShowingTime, 2018 saw a 12 percent increase from the same period last year. August 21 Travel activity is down 6 percent from the start of the year.
  • Mortgage applications fell 21% in the week ending Aug. 19 from a year earlier, while the seasonally adjusted index fell 1% for the week.

Key housing market deals for 400+ US metro areas:

This data covers the four week period ending August 21st.

  • The median home sale price was $371,125, up 6% year over year. In the year It was down 6% from a record high of $394,775 in the four-week period ended June 19. A year ago, it was up 0.6 percent over the same period.
  • Only two metro areas saw a year-over-year decline in median home sales prices, both in the Bay Area: Oakland, California, where prices fell 0.5% to $937,500, and San Francisco, where prices fell 3.9% to $1,453,750. .
  • The median price of newly listed homes increased 10% year over year to $382,475. It was down 5% from its record high in the four-week period ending May 22. They decreased by 0.4 percent during the same period last year.
  • The median monthly mortgage payment at the current 5.55% mortgage rate was $2,305, up 38% from $1,665 a year ago. That’s down from a high of $2,461 in the four weeks ending June 12.
  • Pending home sales fell 17 percent year-over-year.
  • Newly sold home listings fell 15% from a year ago, the biggest decline since May 2020.
  • Active listings (the number of homes listed for sale at any point in the period) fell 0.6% from the previous four-week period, the biggest decline since January 2022. It increased by 4.3% year over year.
  • 36% of homes under contract had an offer accepted in the first two weeks on the market, unchanged from the previous four weeks but down from 43% a year ago.
  • 24% of homes under contract had an offer accepted within a week of going on the market, unchanged from the previous four-week period but down from 30% a year ago.
  • Sold homes were on the market for an average of 25 days, up from 21 days a year ago and a record 17 days in May and early June.
  • 38% of homes sold above list price, down from 50% a year ago.
  • On average, weekly home sales fell 7.7%, a record high but unchanged from the previous four weeks.
  • The average sales-to-list price ratio, a measure of how much homes sell for their asking price, fell to 100% from 101.5% a year ago. In other words, the average house sells for the asking price.

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