Wednesday, September 27, 2023
HomeBusinessSellers lose the upper hand as mortgage rates hit 6%, Redfin reports

Sellers lose the upper hand as mortgage rates hit 6%, Redfin reports

High Mortgage Rates Bring Balance to the Market, But Come at a High Price for Buyers and Sellers SEATTLE–(BUSINESS WIRE)–(BUSINESS WIRE) NEWS ) — (NASDAQ: RDFN ) — The housing market is becoming more balanced, but the market has slipped away for buyers with high monthly mortgage payments and after mortgage rates have doubled this year . That’s according to a new report from tech-driven real estate brokerage Redfin ( Housing supply was 2.9 months in the four weeks ended September 11, up from 1 month a year ago and the highest level since June 2020. Months of rapid supply climbs suggest that sellers quickly lost control of the market as mortgage rates soared to 6%, leaving many buyers unaffordable. Potential sellers are reluctant to list in this environment, which is why inventory is down. But it’s also hard to say that buyers have a real advantage. “Homebuyers have more power than ever since ‘before’,” said Taylor Marr, deputy chief economist at Redfin. “Unfortunately, due to rising mortgage rates and homes for sale The lack of affordability pressure makes it increasingly difficult for buyers to take advantage of their newfound power. A true buyer’s market will have more homes for sale than buyers, with a wide variety of homes for sale, broken down by style, price and location , so when buyers find a home that matches their preferences, they face little competition and can be offered for less than asking price with proper inspection and financing surprises. The average buyer today pays less than The list price is high, but they are still struggling to find a home that fits their criteria and budget.” Leading Indicators of Home Buying Activity :

  • Ending the week on September 15, the 30-year mortgage rate rose to 6.02%, the highest level since November 2008.
  • Fewer people searching for “homes for sale” on Google. Searches for the week ended September 10 were down 26% from a year earlier.
  • Seasonally Adjusted Redfin Home Buyer Demand Index – a measure of Redfin agents’ requests for home travel and other home buying services Metrics – down 11% year after year.
  • Tourism activity through September 11 was down 14% from the beginning of the year, compared with an 8% increase a year earlier, according to Home Travel Technology company ShowingTime said.
  • Mortgage purchase applications increased 0.2% weekly on a seasonally adjusted basis, year over year for the week ended September 9 Down 29% Unless otherwise stated, this data covers the four-week period ending September 11. Redfin’s weekly housing market data goes back to 2015.
  • The median home sale price was $371,748, up 7% year over year.
  • Home sales prices in San Francisco fell 8% year over year, the biggest drop since July 2022. Neighboring Oakland, Calif., down 1.6%, San Jose, Calif., down 0.2%, and New Orleans, down 6%, were the only four metro areas where median sales prices fell year-over-year.
  • The median asking price for newly listed homes increased 8% year over year to $380,725.
  • At the current mortgage rate of 6.02%, the monthly mortgage payment for a median asking price home is $2,385, more than a year The previous $1,674 was up 42% when mortgage rates were at 2.86%. That was down from a peak of $2,460 reached in the four weeks ended June 19.
  • Pending home sales fell 19% year over year, the largest decline since May 2020.
  • New listings for sale fell 19% year over year, the largest decline since May 2020.

  • Active listings (the number of homes listed for sale at any time during this period) fell 1.7% from the previous four weeks. They were up 3% from a year earlier.
  • Months of Supply – A measure of the balance between supply and demand, calculated by dividing the number of items sold by the number of items sold- It increased to 2.9 months, the highest level since July 2020.
  • 34% of homes under contract received an accepted offer within the first two weeks on the market, a change from the first four weeks Not big, but down from 41% a year ago.
  • 23% of homes under contract received an offer within one week of listing, a change from the previous four weeks Not much but down from 28% a year ago.
  • Homes sold were on the market for a median of 28 days, up from 22 days a year ago, a record 17-day all-time low in May and early June.
  • 34% of homes sold above list price, down from 48% a year ago.
  • The weekly average of 7.2% of homes for sale fell, up from 3.8% a year ago.
  • The average sale price to listing price ratio, which measures how close a home sells to asking price, fell from 101.1% to 99.5% a year ago . To view the full report, including charts, visit:

    Housing Market Update: Sellers Lose the Upper Hand as Mortgage Rates Top 6%

    About Redfin Redfin ( 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 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.

    Redfin Reporter Services:
    Kenneth Applewhite, 206-588-6863

    [email protected] Source: RedfinPublished on September 15, 2022



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