Inventory increases as buyers recede. More sellers are lowering prices accordingly. The price-cut listing share is approaching a record high.
In the four weeks leading up to June 5, the number of homes sold fell by 8%, the lowest since January 2020. This reflects a decline in homebuyer demand rather than the number of homes for sale. Home purchase tours, offers, and other requests, as measured by the Redfin Homebuyer Demand Index, fell 12% last week, with new listings down 2% over the four weeks, but 21% of sellers down. .. The second highest market share on record, dating back to 2015.
Redfin’s Deputy Chief Economist said: Taylor Mar.. “While demand is easing, some homebuyers may return to the market as price increases lose momentum and interest rates remain stable. The strong labor market is still in large numbers this year. It will be the driving force for home purchase demand. “
Key Indicators of Home Buying Activity:
- Few people Search for “house for sale” on Google— The number of searches for the week ending June 4th decreased by 10% year-on-year.
- The seasonally adjusted Redfin Home Buyer Demand Index, an indicator of requests for home tours and other home buying services from Redfin agents, fell 12% year-over-year in the week leading up to June 5. This was the 8th consecutive week of decline. index.
- As of June 5, touring activity was only 0.1% higher than at the beginning of the year, compared to 25.1% at this time last year. According to Home Tour Technology Company Showing Time..
- Mortgage purchase applications fell 21% year-on-year, but the seasonally adjusted index is 7% reduction weekly Week until June 3rd.
- 1 week until June 9th 30-year mortgage rates rose to 5.23%..
Key Housing Market Points in Over 400 US Metropolitan Areas:
Unless otherwise stated, the data in this report is 4 weeks until June 5th.. Redfin’s housing market data dates back to 2012.
Data based on homes listed and / or sold during the period:
- Median home sales were $ 401,372, up 15% year-over-year.
- The average offer price for newly listed homes increased 17% year-over-year to $ 413,950.
- Monthly mortgage payments for median home prices have increased to $ 2,428 at the current 5.23% mortgage rate. This is a 42% increase from $ 1,710 in the previous year, when mortgage rates were 2.96%.
- Pending home sales were down 8% year-over-year, comparable to the decline seen in May 2020.
- New listings of homes for sale decreased by 1% year-on-year.
- The active list (the number of homes for sale at any time during the period) decreased by 8% year-on-year. This is the smallest decrease since January 2020.
- Fifty-one percent of contracted homes had the same accepted offers as the previous year within the first two weeks of market.
- Thirty-six percent of contracted homes accepted offers within a week of being on the market, down from 38% in the previous year.
- Homes sold were on the market at record low medians on the 15th, down from the 18th of the previous year.
- 56% of homes exceeded list prices, up from 52% in the previous year.
- On average, there was a price cut of 5.3% of homes for sale each week. Overall, 21.2% have fallen prices in the last four weeks, up from 15.2% a month ago and 10.3% a year ago. This was the highest share since October 2019.
- The average selling price ratio, which measures how close a home is to the asking price, fell slightly to 102.7%. In other words, the average home sold 2.7% above its asking price. This is an increase from 101.9% in the previous year.
See us Metric definition page A description of all the metrics used in this report.