SEATTLE
,
October 21, 2022
(press release)
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Redfin reports about 60,000 deals were called off, equal to 17% of homes that went under contract—the highest share on record aside from March 2020 Home sales and listings in September both slumped the most on record with the exception of the early months of the pandemic as rapidly rising mortgage rates prompted both buyers and sellers to stay put, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The number of homes sold dropped 25% year over year while new listings fell 22%—the largest declines since May 2020 and April 2020, respectively, when the onset of the pandemic brought the housing market to a near halt. “The U.S. housing market is at another standstill, but the driving forces are completely different from those that triggered the standstill at the start of the pandemic,” said Redfin Economics Research Lead Chen Zhao. “This time, demand is slumping due to surging mortgage rates, but prices are being propped up by inflation and a drop in the number of people putting their homes up for sale. Many Americans are staying put because they already relocated and scored a rock-bottom mortgage rate during the pandemic, so they have little incentive to move today.” While the median home-sale price was down 0.5% month-over-month in September, it still rose 8% on a year-over-year basis to $403,797. Zhao continued: “The housing market is going to get worse before it gets better. With inflation still rampant, the Federal Reserve will likely continue hiking interest rates. That means we may not see high mortgage rates—the primary killer of housing demand—decline until early to mid-2023.” Homebuyers are backing off because mortgage rates are now at the highest level in two decades, which has driven monthly housing payments for buyers up more than 50% year over year. Prospective sellers are backing off because they don’t want to risk losing the low mortgage rate they already have locked in. As a result, deals are increasingly falling through and buyer competition is plunging. Roughly 60,000 home-purchase agreements were canceled in September, equal to 17% of homes that went under contract that month. That’s the highest percentage on record with the exception of March 2020—the month the World Health Organization declared the coronavirus a pandemic. Fewer than half (46%) of offers written by Redfin agents faced competition in September, the lowest share since the start of the pandemic. National Highlights Market Summary September 2022 Month-Over-Month Year-Over-Year Median sale price $403,797 -0.5% 7.6% Homes sold, seasonally-adjusted 478,593 -2.7% -24.7% Pending sales, seasonally-adjusted 451,438 -5% -25.3% New listings, seasonally-adjusted 503,156 -1.1% -22.4% All homes for sale, seasonally-adjusted 1,499,642 -2.2% 0.8% Median days on market 32 5 13 Months of supply 2.3 0.2 0.7 Share of homes sold above final list price 32% -5.8 pts† -15.9 pts† Average sale-to-final-list-price ratio 99.2% -0.6 pts† -1.8 pts† 6.11% 0.89 pts† 3.21 pts† Share of for-sale homes with a price drop 22.4% 1.2 pts† 9.8 pts† Share of home offers written by Redfin agents that faced competition (seasonally adjusted) 46.4% -2.3 pts† -19.5 pts† Pending sales that fell out of contract, as % of overall pending sales 17% 2 pts† 4.5 pts† † - “pts” = percentage-point change Note: Data is subject to revision Metro-Level Highlights Competition Prices Sales Inventory To view the full report, including charts, additional metro-level data and methodology, please visit: https://www.redfin.com/news/sales-listings-plunge-september-2022 About Redfin Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), 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 can take an instant cash offer from Redfin or 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. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 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. Redfin Journalist Services: Source: Redfin Released October 19, 2022
View source version on businesswire.com: https://www.businesswire.com/news/home/20221019005343/en/
Ally Braun, 206-588-6863
press@redfin.com
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