New home listings fell to their lowest level since February during the four weeks ending June 21, a sign that some homeowners are pulling back during what is typically the busiest stretch of the spring selling season.
According to Redfin's latest weekly housing market report, seasonally adjusted new listings declined 1.7% from the previous week, while active listings slipped 0.4%.
The pullback comes as homebuying demand continues to soften. Pending home sales edged down 0.1% from the previous week, marking the third consecutive weekly decline since reaching a seasonal peak in May. Mortgage purchase applications also fell for the second straight week.
Despite the recent slowdown, pending sales remain 4.2% higher than they were a year ago.
The median U.S. home-sale price climbed 2.5% year over year to a record $408,814, while the average 30-year fixed mortgage rate was 6.47% for the week ending June 18.
Redfin said some homeowners are opting not to list because they would also become buyers, forcing them to trade the historically low mortgage rates they locked in during recent years for today's higher borrowing costs.
The latest report builds on Redfin's recent finding that buyers continue to gain negotiating leverage despite elevated home prices. Last week, the brokerage reported that nearly half of home sellers offered concessions in May — the highest share on record for that month — as competition for buyers remained muted.
That trend remains evident. Buyers are increasingly including inspection contingencies in their offers and negotiating repairs or seller credits before closing.
"Home inspectors are busy. Buyers are regularly including inspection contingencies in their offers, which is one sign that they have the negotiating power," said Ben Ambroch, a Redfin Premier agent in Milwaukee. "They're requesting repairs and money based on the inspection, and sellers often need to give buyers what they ask for in order to close the deal."
Nationally, the median monthly housing payment was $2,628 at a 6.47% mortgage rate. Homes spent a median of 39 days on the market, one day longer than a year ago, while 19.6% of listings recorded price reductions.
Among the nation's 50 largest metro areas, San Francisco posted the largest year-over-year increase in median sale prices at 11.5%, followed by Detroit (9.7%), West Palm Beach, Florida (9%), Pittsburgh (8.7%) and St. Louis (8.5%). San Jose, California, saw the largest decline, with median sale prices falling 6.2% from a year earlier.
For mortgage professionals, the latest Redfin data suggests buyer leverage remains intact even as the flow of new listings begins to slow — a market dynamic worth watching as the industry heads into the second half of the year.
