Potential sellers are reluctant to list their homes because they are already starting to see prices drop. With few new listings, buyers’ newly acquired bargaining power is nearing its limit, especially if demand is steady. SEATTLE–(BUSINESS WIRE)–(NASDAQ: RDFN)–For the four weeks ended August 21, New listings for homes for sale fell 15% year over year, the largest annual decline since the pandemic began. As a result, according to a new report from technology firm Redfin (redfin.com), the supply of homes for sale fell 0.6% from the previous four weeks — a slight dip, but only the second decline since February. – Powerful real estate agency. With rising mortgage rates and economic uncertainty leading to fewer buyers in the market, homeowners are listing their homes in part in response to reduced demand and falling prices. Those who put their homes on the market started pricing based on lower demand. The median asking price for new listings is down 5% from the all-time high set in May, and sales prices are down 6% from the record high set in June. The share of homes for sale that fell in price leveled off after rising through the spring and early summer. “Sellers are coming to terms with the fact that fluctuations in mortgage rates are dampening demand. Some sellers are pricing lower, while some homeowners are staying put because they fear they won’t get a good offer, or they won’t Forgoing their mortgage rates are low,” said Zhao Chen, head of economic research at Redfin. “With the number of homes for sale no longer increasing, buyers’ new-found bargaining power has reached its limits. Notably, early indicators of demand, such as tours and agents seeking help, have risen from June lows and remain stable. .So “there’s a bunch of interested buyers out there, but sellers need to price fairly to attract them. If more sellers and buyers find a middle ground on price, we could see a boost in sales. ” Leading indicator of home buying activity :
- The median home sale price was $371,125, Up 6% year over year. Prices are down 6% from an all-time high of $394,775 set in the four weeks ended June 19. A year ago, they were up 0.6% in the same period.
- Only two metro areas saw a year-over-year decline in median home sales prices, both in the Bay Area: Oakland, CA, where prices fell 0.5% to $937,500, and San Francisco, which fell 3.9% to $1,453,750.
- Median asking price for newly listed homes increased 10% year over year to $382,475. In May Asking prices are down 5% from their all-time highs over a 4-week period on the 22nd. They were only down 0.4% in the same period last year.
- At the current mortgage rate of 5.55%, the monthly mortgage payment for a median asking price home is $2,305, up 38% from $1,665 a year ago, when the mortgage rate was 2.87 %Time. That was down from a peak of $2,461 reached in the four weeks ended June 12.
- Pending home sales fell 17% year over year.
- New listings for sale fell 15% year over year, the largest decline since May 2020.
- Active listings (the number of homes listed for sale at any time during this period) decreased 0.6% from the previous four weeks, which is the most since 2022 The biggest drop since January. A year-on-year increase of 4.3%.
- 36% of homes under contract received an accepted offer within two weeks of listing, unchanged from the previous four weeks Large but down from 43% a year ago.
- 24% of homes under contract received an offer within one week of listing, little change from the previous four weeks but That’s down from 30 percent a year ago.
- The median time it took for a home to sell was 25 days, up from 21 days a year ago and a record low of 17 days May and early June.
- 38% of homes sold above list price, down from 50% a year ago.
- On average, 7.7% of homes for sale fell on a weekly basis, a record high but unchanged from the previous four weeks.
- The average sale price to listing price ratio, which measures how close a home sells to asking price, fell from 101.5% to 100.0% a year ago . In other words, the average home sells for the asking price.
- Only two metro areas saw a year-over-year decline in median home sales prices, both in the Bay Area: Oakland, CA, where prices fell 0.5% to $937,500, and San Francisco, which fell 3.9% to $1,453,750.
To view the full report (including charts), visit: https://www.redfin.com/news/housing -market-update-sellers-retreat-new-listings-drop. About Redfin Redfin (www.redfin.com) is a technology-driven real estate company. We help people find housing through brokerage, instant home buying (iBuying), leasing, lending, title insurance and renovation services. We sell the house at a higher price and charge half the fee. We also operate the #1 real estate brokerage website in the country. Our homebuying clients see the home first with on-demand tours, and our loan and title services help them close quickly. Customers who sell their home can get an instant cash quote from Redfin or have our renovators fix their home for a premium price. Our rental business enables millions of people across the country to find apartments and homes for rent. Since our launch in 2006, we’ve saved our clients over $1 billion in commissions. We serve more than 100 markets in the US and Canada and employ over 6,000 people. For more information or to contact a local Redfin Realtor, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, please email p[email protected]. To view Redfin’s newsroom, click here. View source version at businesswire.com: https://www.businesswire.com/news/home/20220825005668/en /
[email protected] Source: Redfin August 25, 2022 Post
