SEATTLE
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July 20, 2023
(press release)
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Prices posted their biggest increase in over seven months, with more demand than supply as high mortgage rates deter sellers The typical U.S. home sold for $382,500 during the four weeks ending July 16, up 2.1% from a year earlier. That’s the biggest increase since December 2022 and the second straight price uptick after nearly five months of declines, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Prices are rising substantially in some metro areas, including Milwaukee, where the housing market remained relatively steady throughout the pandemic. But they’re declining in other parts of the country, with the biggest drops in places where prices soared during the pandemic, including Austin and Phoenix. High home prices and mortgage rates pushed the typical homebuyer’s monthly payment up to a record $2,656. Daily average mortgage rates are inching down thanks to cooling inflation, but housing payments are likely to remain elevated because even slightly lower rates may escalate competition for the few homes on the market and push up prices for the foreseeable future. Prices are rising because there’s more demand than supply. Redfin’s Homebuyer Demand Index—which measures early-stage demand by tracking requests for tours and other buying services from Redfin agents—is up 2% from a year ago. Pending home sales are down 15% year over year, but new listings are down 25%, with homeowners handcuffed by relatively low mortgage rates. The total number of homes for sale is down 16%, the biggest dip in a year and a half, and inventory also posted an unseasonal monthly decline. “Even though buyers are trepidatious about high mortgage rates, we’re seeing bidding wars in several pockets of the market because there are so few options and even fewer good options,” said Raleigh, NC Redfin Premier agent Jordan Hammond. “Condos, townhouses and new construction homes are selling quickly, partly because they don’t require much work and people can’t afford to fix up a home when they have such high monthly mortgage payments. After over a year of high rates, buyers are getting used to lowering their budgets, searching for smaller homes, and thinking outside the box to reduce their monthly payments, doing things like rate buydowns or large down payments.” Leading indicators of homebuying activity: Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, this data covers the four-week period ending June 16. Redfin’s weekly housing market data goes back through 2015. For bullets that include metro-level breakdowns, Redfin analyzed the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-climb-low-supply About Redfin Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people. For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here. Contact Redfin Source: Redfin Released July 20, 2023
View source version on businesswire.com: https://www.businesswire.com/news/home/20230720836644/en/
Redfin Journalist Services:
Kenneth Applewhaite, 206-588-6863
press@redfin.com
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