Home News Prices Begin to Fall from Record Highs

Prices Begin to Fall from Record Highs

by admin
0 comment

Inflation and high mortgage rates are grabbing homebuyers’ budgets and reducing sales and supply growth.

Median home selling prices in the US fell 0.7% from a record June peak in the four weeks leading up to July 10. high. Housing supply recorded its first year-over-year increase since August 2019 as pending sales continued to decline. These changes in the housing market can result from buyers reaching the limits of food, transportation and energy costs, as well as housing and mortgages.

“Inflation and high mortgage rates are eating up the budgets of homebuyers,” said Redfin’s Chief Economist. Darryl Fairweather.. “In some areas, few people can buy homes that are 50% more expensive than they were two years ago, so homes are starting to build up on the market. As a result, prices are starting to fall from record highs. We expect this environment of fierce competition and falling house prices to continue for at least the next few months. “

Key Indicators of Home Buying Activity:

  • Week until July 14th 30-year mortgage rates have risen to 5.51%.. This decreased from the 2022 high of 5.81%, but increased from 3.11% at the beginning of the year.
  • Few people Search for “house for sale” on Google— The number of searches for the week up to July 9 decreased by 5% 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 18% year-over-year in the week leading up to July 10.
  • As of July 10, touring activity has increased by 1% since the beginning of the year, compared to a 23% increase over the same period last year. According to Home Tour Technology Company Showing Time..
  • Mortgage purchase offers fell 18% year-on-year in the week leading up to July 8, but the seasonally adjusted index is 4% decrease weekly..

Key Housing Market Points in Over 400 US Metropolitan Areas:

Unless otherwise stated, the data in this report is 4 weeks until July 10th.. Redfin’s housing market data dates back to 2012.

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

  • Median home sales were $ 393,449, up 12% year-on-year. It fell 0.7% from its four-week peak until June 19. The median for the same period a year ago rose 0.9%. Year-over-year growth fell from its March peak of 16%.
  • The average offer price for newly listed homes was $ 397,475, up 14% year-on-year, down 2.8% from a four-week record high until May 22nd. The average price during the same period last year fell slightly. 0.9%.
  • Monthly mortgage payments at median mortgages reached $ 2,387 at the current 5.51% mortgage rate, up 44% from the previous year’s $ 1,663, where mortgage rates were 2.88%. This is slightly below the $ 2,487 peak that reached the four weeks leading up to June 12.
  • Pending home sales fell 14% year-on-year, the largest decline since May 2020.
  • New listings of homes for sale decreased 1.7% year-on-year.
  • The active list (the number of homes for sale at any time during the period) increased by 1.3% year-on-year. This is the largest increase since August 2019.
  • Forty-three percent of contracted homes accepted offers within the first two weeks of market, down from 47% in the previous year.
  • Twenty-nine percent of contracted homes accepted offers within a week of being on the market, down from 33% in the previous year.
  • Homes sold were on the market with a median of 18 days, flat year-on-year, up slightly from the record lows of 15 days set in May and early June.
  • 51% of homes exceeded list prices, down from 54% in the previous year.
  • Until early 2015, prices fell by an average of 7.1% of homes sold weekly, hitting record highs back to data.
  • The average selling price ratio, which measures how close a home is to the asking price, has dropped to 101.6%. In other words, the average home sold 1.6% above its asking price. This was down from 102.2% in the previous year.

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

Median asking price

Median mortgage payments

Pending sale

New list

Active list

Out of market in 2 weeks

Out of market in a week

Days in the market

Sold in the list above

Price cut

Price cut

Sale to list

Redfin Home Buyer Demand Index

You may also like