The US housing market may finally be chilling.
According to a weekly survey by Redfin, nearly one in five homeowners cut prices in the four weeks leading up to May 22nd. This is the highest rate since 2019. Published on Thursday.. In the same four weeks, Google’s “House for Sale” browser search fell 13%, and home tours and other related services by Redfin agents fell 12% year-over-year. This is the largest decrease since April 2020.
On the other hand, the Market Composite Index, which tracks mortgage purchase requests, 1.2% down And new home sales are at their lowest level since April 2020. 16.6% decrease From March, according to a report from the US Census Bureau published on Tuesday.
In summary, the numbers suggest that rising homeownership costs are shrinking the pool of potential homebuyers and forcing sellers to lower prices. According to Redfin data, interest rates on 30-year fixed-rate mortgages have skyrocketed by nearly 2% since January, and as of May 22, monthly mortgage costs have increased by 42.1% year-on-year.
According to a Redfin survey, sellers are still asking for a lot of money. Average house prices rose 17.8% year-on-year to a record $ 418,000. However, the rate of price increase over the past four weeks has been relatively low, suggesting a possible stagnation.
“The softening of the housing market is becoming clearer,” said Darryl Fairweather, chief economist at Redfin, in a research report. “For now, home loan rates are stable and prices I think it will be the same. “
In a previous Redfin report, Fairweather also commented on the potential slowdown, noting that homebuyers may be able to take advantage of price declines throughout the coming summer.
“This sudden pressure on sellers is good news for homebuyers who can still afford to buy at today’s higher mortgage rates,” she writes. “These trends show that the market is even cooler this summer.”