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Housing Market Update: Homebuying Demand Dips Further

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Pending sales and Redfin’s Home Buyer Demand Index recorded the largest year-over-year decline in more than two years.

Demand for home purchases has further receded as mortgage rates have reached their highest levels in over 13 years. Other demands for home tours, offers, and agent assistance, measured by the Redfin Homebuyer Demand Index, recorded the largest annual decline in two years. The seller is not holding up. The weekly share of the reduced list reached its highest in the four weeks leading up to June 19.

“Housing demand has cooled significantly as mortgage rates are close to 6%,” said Redfin Chief Economist. Darryl Fairweather.. “House prices are still at record highs, Affordable crisis dialed up to 11 out of 10.. Home vendors are aware of this. Record shares are lowering their asking prices. Home sales are low, but prices haven’t fallen significantly yet. However, if the housing market continues to cool, prices could fall in 2023. “

“Many homeowners have in mind that homes sell a certain amount of money that exceeds demand, or that home prices can be set low to trigger a bid war, That strategy isn’t working anymore“A Boston Redfin real estate agent said. Robin Spangenberg.. “High mortgage rates have driven many buyers out of the market, which means that sellers need to set prices that are okay to leave home. This is currently one or two. Because you may only get an offer. “

Key Indicators of Home Buying Activity:

  • One week until June 23, 30-year mortgage rates have risen to 5.81%— Highest level since November 2008.
  • Few people Search for “house for sale” on Google— The number of searches for the week leading up to June 18 decreased by 14% 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 16% year-over-year in the week leading up to June 19. This was the largest decline since April 2020.
  • Tour activity as of June 19 was down 6% from the beginning of the year, compared to a 24% increase at this time last year. According to Home Tour Technology Company Showing Time..
  • Mortgage purchase offers fell 10% year-on-year, but seasonally adjusted indexes 8% increase weekly Week until June 17th.

Key Housing Market Points in Over 400 US Metropolitan Areas:

Unless otherwise stated, the data in this report is 4 weeks until June 19th.. Redfin’s housing market data dates back to 2012.

Data based on homes listed and / or sold during the period:

  • Median home sales rose 14% year-over-year to a record high of $ 399,998.
  • The average offer price for newly listed homes increased 16% year-over-year to $ 405,998.
  • Monthly mortgage payments for median home prices have increased to $ 2,500 at the current 5.81% mortgage rate. This is a 48% increase from $ 1,693 in the previous year, when mortgage rates were 3.02%.
  • Pending home sales fell 10% year-on-year, the largest decline since May 2020.
  • New listings of homes for sale decreased by 2% year-on-year.
  • The active list (the number of homes for sale at any time during the period) decreased by 5% year-on-year. This is the smallest decrease since December 2019.
  • Forty-eight percent of homes with contracts accepted offers within the first two weeks of market, down from 50% in the previous year.
  • 34% of homes with contracts accepted offers within a week of being on the market, down from 36% in the previous year.
  • Homes sold averaged 17 days, down from 18 days in the previous year and slightly higher than the record lows of 15 days set in May and early June.
  • 55% of homes exceeded list prices, up from 53% in the previous year.
  • Until early 2015, prices fell by an average of 6.1% of homes sold weekly, setting a new record high for data.
  • The average selling price ratio, which measures how close a home is to the asking price, fell slightly to 102.4%. In other words, the average home sold 2.4% above its asking price. This is an increase from 102.1% in the previous year.

See us Metric definition page A description of all the metrics used in this report.

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