Nearly 1 in 5 Sellers is Dropping Their Price

Initial demand has recorded the largest annual decline since April 2020, so home buying competition has leveled off. However, mortgage rates can be flat and prevent further declines in demand.

The housing market is sending a clearer signal that the pandemic-led housing frenzy is nearing its end. In the four weeks leading up to May 22, one in five home retailers (19.1%) dropped in price. This is the highest level since October 2019. All homes sold above the list price have been flat. Mortgage purchase applications were at the same level as June 2020, and the number of homebuyers’ tours and offers measured by the Redfin Homebuyers Demand Index recorded the largest annual decline since April 2020.

Redfin’s Chief Economist said: Darryl Fairweather.. “For now, I think mortgage rates are stable and prices will be the same. This will eliminate buyer uncertainty. That is, as long as home prices are modest, soon. It means that it is likely to sell to. “

Key Indicators of Home Buying Activity:

Few people Search for “house for sale” on Google— The number of searches for the week up to May 21 was down 13% 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 May 22nd. This is because the April 2020 pandemic suspended most home buying activities.
Tour activity from the first week of January to May 22 was 29 percentage points behind the same period in 2021. According to Home Tour Technology Company Showing Time..
Mortgage purchase offers fell 16% year-on-year, but seasonally adjusted indexes Flat weekly Week until May 20th.
One week until May 26, 30-year mortgage rates have fallen slightly to 5.1%..

Key Housing Market Points in Over 400 US Metropolitan Areas:

Unless otherwise stated, the data in this report is 4 weeks until May 22.. Redfin’s housing market data dates back to 2012.

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

Median home sales rose 16% year-over-year to a record $ 400,000.
The average offer price for newly listed homes reached a record high of $ 418,000, up 18% year-on-year.
Monthly mortgage payments for median home prices have fallen slightly from a record high of $ 2,425 at current 5.1% mortgage rates. This is a 42% increase from $ 1,708 in the previous year, when mortgage rates were 2.95%.
Pending home sales were down 5.4% year-on-year.
New listings of homes for sale decreased 0.9% year-on-year.
The active list (the number of homes for sale at any time during the period) decreased by 13% year-on-year. This is the smallest decrease since April 2020.
Fifty-five percent of contracted homes accepted offers within the first two weeks of market, up from 53% in the previous year.
40% of contracted homes accepted the offer within a week of being on the market. This is an increase from 40% in the previous year.
Homes sold were on the market at record low medians on the 15th, down from the 19th of the previous year.
57% of homes exceeded the list price, a record high from 50% in the previous year.
On average, there was a price cut of 4.8% of homes for sale each week. Overall, 19.1% have dropped prices in the last four weeks, up from 13.0% a month ago and 9.8% a year ago. This was the highest share since October 2019.
The average selling price ratio, which measures how close a home is to a desired price, was flat at a record high of 102.8%. In other words, the average home sold 2.8% above its asking price. This is an increase from 101.6% in the previous year.