Demand for homes is declining, but homes are still selling fast as there are still buyers in a hurry to overcome the mortgage surge.
A typical seller found a buyer in 15 days, the fastest pace ever, in the four weeks leading up to May 8. Meanwhile, pending sales fell 6%, the largest year-over-year decline since the first June 2020. The pandemic shock to the housing market was just waning. Many buyers who have not yet been priced due to soaring home prices are rushing to get a home before they become even more expensive. A typical homebuyer’s monthly mortgage payments are currently at $ 2,427, a record high, up 44% from the previous year’s $ 1,685.
“The rise in mortgage rates has significantly reduced demand,” said Redfin Chief Economist. Darryl Fairweather.. “But still, homebuyers remaining on the market are facing fierce competition for the most desirable homes in particular. Given the shortage of homes for sale, buyers are really positive about the market. Demand needs to drop significantly to realize that. “
Early-stage home buying demand, as measured by Redfin’s Home Buyer Demand Index last week, fell by 7%, boosting the share of reduced homes for sale to a maximum of 16% in seven months in four weeks. This is the largest of the year. Decreased after April 2020.
“Prices have fallen further in recent weeks and homebuyers are beginning to find some relief from the competition,” said Redfin Real Estate Agent in Salt Lake City. Rin Barrett.. “People who have been looking for a long time and have always been defeated by other buyers are beginning to accept their offer. They may not be in the ideal place or settled in a house that needs work. Maybe, they’re happy because even they seemed impossible to win a few months ago. But desirable homes in prime locations are still rapid and rapid, with no apparent slowdown so far. It sells at a premium. “
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 7 decreased by 6% 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 7% year-over-year in the week leading up to May 8. It has decreased by 19% in the last 4 weeks. Compared to the 11% decrease in the same period last year.
- Tour activity from the first week of January to May 8 was 30 percentage points behind the same period in 2021. According to Home Tour Technology Company Showing Time..
- Mortgage purchase offers fell 8% year-on-year, but seasonally adjusted indexes 5% increase weekly Week until May 6th.
- 1 week until May 12th 30-year mortgage rate increased to 5.3%— Highest level since June 2009.
Key Housing Market Points in Over 400 US Metropolitan Areas:
Unless otherwise stated, the data in this report is 4 weeks until May 8th.. Redfin’s housing market data dates back to 2012.
Data based on homes listed and / or sold during the period:
- Median home sales rose 17% year-over-year, the highest since August, reaching a record high of $ 397,356.
- The average offer price for newly listed homes rose 17% year-on-year to $ 411,350, a new record high.
- Monthly mortgage payments to median home prices rose to a record high of $ 2,427 at current 5.3% mortgage rates. That’s a record 44% increase from $ 1,685 in the previous year, when mortgage rates were 2.94%.
- Pending home sales fell 6% year-on-year, the largest decline since June 2020.
- New listings of homes for sale decreased by 5% year-on-year and have decreased year-on-year most of the time since September 2021.
- The active list (the number of homes for sale at any time during the period) decreased by 17% year-on-year.
- 56% of contracted homes accepted the offer within the first two weeks of the market. This was an increase of 54 percent from the previous year and a decrease of less than 1 percentage point from the four-week record high until March 27.
- Forty-two percent of contracted homes accepted the offer within a week of being on the market. This was an increase of 41 percent from the previous year and a decrease of less than 1 percent from the four-week record high until March 27.
- Homes sold were on the market at record low medians on the 15th, down from 20.2 days in the previous year.
- 57% of homes exceeded the list price, a record high from 48% in the previous year.
- On average, there was a price cut on 4% of homes for sale each week. Overall, 16.1% have fallen prices in the last four weeks, up from 11.7% a month ago and 9.2% a year ago. This was the highest share since late October.
- The average selling price ratio, which measures how close a home is to a desired price, has risen to a record high of 102.8%. In other words, the average home sold 2.8% above its asking price. This is an increase from 101.3% in the previous year.
See us Metric definition page A description of all the metrics used in this report.