Explore More Than Just This Free Article

This article is a glimpse of the exclusive insights we provide daily to industry leaders. Dive deeper into our industry-specific reports and uncover the strategic information you need.

Median US monthly housing payment was US$2,722 during the four-week period ending Jul. 14, an increase of 6.1% year-over-year; median home sale price was US$396,379, up 4.4% year-over-year: Redfin

July 18, 2024 (press release) –

Download as PDF

Mortgage rates dropped to their lowest level since February after the latest CPI report showed inflation cooling. Still, pending home sales posted their biggest decline in eight months

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — The typical U.S. homebuyer’s monthly housing payment was $2,722 during the four weeks ending July 14, $115 lower than April’s all-time high, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s despite home prices sitting just about $100 shy of last week’s record high.

Daily average mortgage rates have dropped to their lowest level since February after last week’s cooler-than-expected inflation report, bringing homebuyers a bit of relief.

A homebuyer on a $3,000 monthly budget can afford a $450,000 home with a 6.8% mortgage rate, roughly the daily average as of July 17. That buyer has gained about $25,000 in purchasing power since rates hit a five-month peak in April, when they could have bought a $425,000 home with a 7.5% rate.

Rising supply is another piece of promising news for homebuyers, with new listings up 6.4% year over year and the total number of listings near its highest level in almost four years. More homeowners are selling because they’re tired of waiting for rates to drop significantly; it has been more than two years since they started rising from pandemic-era lows.

Buyers have yet to react strongly to falling rates and increasing inventory. Pending sales are down 5.6% year over year, the biggest decline in eight months, and Redfin’s Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—is down 15%. Mortgage-purchase applications are down 3% week over week on a seasonally adjusted basis. That’s despite mortgage rates falling year over year; the 6.83% daily average as of July 17 is down from 6.9% a year ago. Some buyers are sitting on the sidelines because they’re hoping mortgage rates will decline more.

“Now that it’s looking increasingly likely the Fed will cut interest rates by the end of the year, some house hunters believe mortgage rates will fall more and are waiting for that to happen before they buy,” said Chen Zhao, Redfin’s economic research lead. “But they may be waiting in vain; it’s unlikely mortgage rates will drop much lower in the next few months, as markets are already pricing in the expectation of a rate cut in September, followed by several more at the end of 2024 and into 2025. In fact, now may be the right time for house hunters to get serious about making offers before prices increase even more and they lose some power. Plus, there are more homes to choose from, and many listings are growing stale, giving buyers an opportunity to negotiate.”

Another reason for slow demand is extreme heat in some parts of the country preventing house hunters from touring. Nashville, TN Redfin Premier agent Kristin Sanchez said: “Severe heat waves are making people feel pretty much locked in their houses. They don’t want to come out to see homes because it’s miserable outside; open houses haven’t been getting much traffic.”

For more on Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Key housing-market data

U.S. highlights: Four weeks ending July 14, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending July 14, 2024

Year-over-year change

Notes

Median sale price

$396,379

4.4%

Just about $100 shy of last week’s all-time high

Median asking price

$404,998

5.2%

 

Median monthly mortgage payment

$2,722 at a 6.89% mortgage rate

6.1%

$115 below all-time high set during the 4 weeks ending April 28

Pending sales

81,297

-5.6%

Biggest decline in 8 months

New listings

93,676

6.4%

 

Active listings

977,230

18.4%

Smallest increase in 3 months

Months of supply

3.6

+0.7 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

39.1%

Down from 44%

 

Median days on market

32

+4 days

 

Share of homes sold above list price

31.6%

Down from 36%

 

Share of homes with a price drop

6.7%

+1.8 pts.

Highest level on record

Average sale-to-list price ratio

99.5%

-0.5 pts.

 

Metro-level highlights: Four weeks ending July 14, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Detroit (16.3%)

Fort Lauderdale, FL (14.4%)

West Palm Beach, FL (13.9%)

Providence, RI (13.4%)

New Brunswick, NJ (12.3%)

Dallas (-2.3%)

Austin, TX (-2.1%)

         

Declined in 2 metros

Pending sales

San Jose, CA (9.6%)

San Francisco (7.1%)

Boston (4.5%)

Newark, NJ (3.5%)

Cincinnati, OH (2.4%)

Houston (-24.4%)

West Palm Beach, FL (-16.9%)

Minneapolis (-16.2%)

Virginia Beach, VA (-13.4%)

Atlanta (-12.9%)

Increased in 7 metros

New listings

San Jose, CA (30.3%)

Las Vegas (19.7%)

Miami (18.9%)

Jacksonville, FL (17.4%)

Seattle (15.6%)

Atlanta (-13.1%)

Houston (-6.6%)

Warren, MI (-5.1%)

Detroit (-4.5%)

Minneapolis (-3.2%)

   

Declined in 8 metros

To view the full report, including charts, methodology and metro-level data, please visit:
https://www.redfin.com/news/housing-market-update-housing-payments-mortgage-rates-decline

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 run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. 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 can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

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.

Released July 18, 2024

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo with Jason
Jason Irving
Jason Irving
- SVP Enterprise Solutions -

We offer built-to-order housing & economy coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again.