Some indicators of a cooling market are now leveling off – including housing supply and the percentage of sellers cutting listings – as would-be sellers hold back due to lower homebuyer demand SEATTLE–(BUSINESS WIRE)–(NASDAQ: RDFN) — The slowdown in the housing market is starting to slow, according to a new report from technology-driven real estate brokerage Redfin (redfin.com). . Fewer homeowners are listing their homes as buyer demand declines. This has hampered the recent increase in housing supply, forcing sellers to slash prices. The number of homes for sale fell slightly in the four weeks ended Aug. 14 from the previous four weeks, the first decline since the start of the year, as new listings fell 14% from a year earlier, the largest decline since June. The largest annual drop in 2020. With fewer homes entering the market, remaining sellers will not face competition from other sellers. As a result, the share of down-priced home listings, a key measure of market cooling, stopped surging and stabilized at an all-time high. The share of markdown listings may also level off as sellers adjust to a cooler market and pricing is more in line with what buyers expected from the start. After months of declines, the share of homes sold in a week has stabilized at around 25%, another sign that the market slowdown is easing. “Many homeowners have been reluctant to sell during the slowing market, which has held back inventory growth,” said Taylor Marr, deputy chief economist at “This means the number of homes available for buyers to choose from. reduce and may lose some of their newly acquired bargaining power, which allows sellers to maintain their pricing without having to cut them.” Leading Indicators of Home Buying Activity :
As of the week ending Aug. 18, the 30-year mortgage rate dropped to 5.13%. This is below the 2022 high of 5.81%, but up from 3.22% at the start of the year.
Fewer Google searches for ‘homes for sale’ – more searches for the week ended August 13 It fell 17% a year earlier, but was up 16% from late May.
Seasonally Adjusted Redfin Home Buyer Demand Index – a measure of Redfin agents’ requests for home travel and other home buying services Metrics – Down 14 percent year-over-year in the week ended Aug. 14.
Travel activity through Aug. 14 was down 5 percent from the beginning of the year, compared with a report from ShowingTime, a home travel technology company. data, up 14% in the same period last year.
Mortgage purchase applications fell 18% in the week ended August 12 from a year earlier, while seasonally adjusted The index fell 1% for more than a week. Key real estate market highlights in over 400 U.S. metro areas: Unless otherwise stated, this data covers the four-week period ending on August 14. Redfin’s weekly housing market data goes back to 2015.
The median home sale price was $373,750, up 7% year over year. Prices are down 5.5% from an all-time high of $395,373 set in the four weeks ended June 19. A year ago, it was up 0.6% in the same period.
Only two metro areas saw a year-over-year decline in median home sales price: Oakland, CA, where home prices fell 1.5% to $926,000 and San Francisco, where prices fell 2.8 percent to $1,463,125.
The median asking price for newly listed homes increased 11% year over year to $385,725. Asking prices are down 4.7% from their all-time high in the four-week period ended May 22. It fell just 0.3% in the same period last year.
At the current mortgage rate of 5.13%, the monthly mortgage payment for a median asking price home is $2,244, more than a year The previous $1,665 was up 35% when mortgage rates were at 2.86%. That was down from a peak of $2,463 reached in the four weeks ended June 12.
Pending home sales fell 17% year over year.
New listings for sale fell 14% year over year, the largest decline since June 2020.
Active listings (the number of homes listed for sale at any time during this period) decreased 0.2% from the previous four weeks, the The first drop since the week of January 30, 2022. The 4% year-on-year increase was the smallest increase since the four weeks ending July 3, 2022.
37% of homes under contract received an accepted offer within two weeks of listing, not much change from the first four weeks, but That’s down from 44 percent a year ago.
25% of homes under contract received offers within one week of listing, little change from the previous four weeks but less than one 31% a year ago.
The median time to sell a home was 23 days, up from 21 days a year ago and a record low of 17 days May and early June.
41% of homes sold above list price, down from 51% 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 price-to-listing ratio, which measures how close a home sells to asking price, fell from 101.6% to 100.3% a year ago . In other words, the average home sold for 0.3% above the asking price. To view the full report, including charts and methodologies, visit:
https://www.redfin.com/news/housing-market-update-slowdown-eases-supply-levels-off 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 [email protected]. To view Redfin’s newsroom, click here.
View source version at businesswire.com: https://www.businesswire.com/news/home/20220818005717/en/
Contact Redfin
Redfin Reporter Services: Kenneth Applewhaite, 206-588-6863
[email protected] Source: Redfin Published on August 18, 2022
