Prices keep rising because this spring’s
inventory is lower than usual. The sliver of good news for buyers
is that mortgage rates have declined slightly
(NASDAQ: RDFN) —The median U.S. home-sale price hit a record
$387,600 during the four weeks ending May 19, up 4% from a year
earlier. That’s according to a new report from Redfin (redfin.com),
the technology-powered real estate brokerage. Weekly average
mortgage rates dipped to 7.02% from a five-month high of 7.22% at
the start of the month, bringing the median monthly housing payment
to $2,854, roughly $20 shy of April’s all-time high.
High housing costs pushed pending home sales down 4.2% year over
year, the biggest decline in three months (except the prior 4-week
period, when sales declined 4.4%). Prices keep rising despite
declining sales because there aren’t enough homes on the market:
New listings are up about 8% year over year, but inventory remains
lower than typical spring levels. Many homeowners are staying put
because they would rather hold onto their relatively low mortgage
rate than move up to a bigger and/or better home.
“Move-up buyers feel stuck because they’re ready for their next
house, but it just doesn’t make financial sense to sell with
current interest rates so high,” said Sam Brinton, a Redfin Premier
agent in Salt Lake City, UT. “The homeowners listing right now are
often doing so because they need to: One of my clients is selling
because of a family emergency, and another couple is selling
because they had a baby and simply don’t have enough room. Buyers
should take note that many of today’s sellers are motivated; if a
home doesn’t have other offers on the table, offer under asking
price and/or ask for concessions because many sellers are willing
to negotiate.”
For Redfin economists’ takes on the housing market, including
more on how current financial events are impacting mortgage rates,
please visit Redfin’s “From Our Economists” page.
Leading indicators
Indicators of homebuying demand and
activity
Value (if applicable)
Recent change
Year-over-year change
Source
Daily average 30-year fixed mortgage
rate
7.09% (May 22)
Up from 6.99% a week earlier, but down
from a 5-month high of 7.52% 4 weeks earlier
Up from 6.95%
Mortgage News Daily
Weekly average 30-year fixed mortgage
rate
7.02% (week ending May 16)
Down from 5-month high of 7.22% 2 weeks
earlier
Up from 6.39%
Freddie Mac
Mortgage-purchase applications
(seasonally adjusted)
Declined 1% from a week earlier (as of
week ending May 17)
Down 11%
Mortgage Bankers Association
Redfin Homebuyer Demand Index
(seasonally adjusted)
Essentially unchanged from a month earlier
(as of week ending May 19)
Down 11%
Redfin Homebuyer Demand Index, a measure
of requests for tours and other homebuying services from Redfin
agents
Touring activity
Up 31% from the start of the year (as of
May 19)
At this time last year, it was up 22% from
the start of 2023
ShowingTime, a home touring technology
company
Google searches for “home for
sale”
Down 8% from a month earlier (as of May
19)
Down 18%
Google Trends
Key housing-market data
U.S. highlights: Four weeks ending May
19, 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 May 19, 2024
Year-over-year change
Notes
Median sale price
$387,600
4%
All-time high
Median asking price
$420,250
6.6%
All-time high
Median monthly mortgage payment
$2,854 at a 7.02% mortgage
rate
10.5%
$18 below all-time high set
during the 4 weeks ending April 28
Pending sales
89,303
-4.2%
Biggest decline since 4 weeks
ending Feb. 25 (except the prior 4-week period, when sales declined
4.4%)
New listings
102,671
8.5%
Active listings
901,194
14.8%
Months of supply
3.2
+0.6 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
44.9%
Down from 49%
Median days on market
33
+3 days
Share of homes sold above list
price
31.3%
Down from 34%
Share of homes with a price
drop
6.4%
+2 pts.
Highest level since Nov. 2022
Average sale-to-list price
ratio
99.5%
-0.1 pts.
Metro-level highlights: Four weeks
ending May 19, 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
Anaheim, CA (20.1%)
Detroit (16.9%)
San Jose, CA (12.9%)
Oakland, CA (12.5%)
West Palm Beach, FL (12%)
San Antonio (-1%)
Fort Worth, TX (-0.6%)
Decreased in 2 metros
Pending sales
San Jose, CA (18.4%)
San Francisco (8%)
San Diego (4.3%)
Newark, NJ (3.6%)
Columbus, OH (3.3%)
West Palm Beach, FL (-15.3%)
Atlanta (-14.9%)
Houston (-14.5%)
Phoenix (-12.3%)
Providence, RI (-11.6%)
Increased in 10 metros
New listings
San Jose, CA (36.7%)
Montgomery County, PA (26.2%)
Phoenix (26.1%)
Seattle (21.2%)
San Diego (21%)
Atlanta (-8.1%)
Chicago (-4.9%)
Detroit (-3.9%)
Virginia Beach, VA (-2.6%)
Newark, NJ (-2%)
Warren, MI (-1.8%)
Decreased in 6 metros
To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-pending-sales-fall-prices-increase
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240523472231/en/
Redfin Journalist Services: Kenneth Applewhaite
press@redfin.com
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