New Listings Up 13% YOY

The U.S. is awash with homes for sale, at least far more than this time last year.

A new report released by Redfin indicated that new listings rose from 13% over the past year, the biggest annual increase in almost three years.

While the housing market may have puffed up in a cloud of front doors, home prices and mortgages are also looming high. 

The median monthly housing payment was $2,686 through the four weeks ending March 10, just $30 shy of last October’s record high.

Though mortgage interest rates declined slightly this past week after a month of increases, they still remain close to 7%. Selling prices are up 5% year over year nationwide, with price increases in all 50 of the most populous U.S. metros for the first time since July 2022.

“Mortgage rates are likely to stay high a little longer than expected, with the latest inflation report essentially eliminating any chance of the Fed cutting interest rates before June,” Redfin Economic Research Lead Chen Zhao said. “Buyers who can afford to may want to get serious about their home search now, as housing costs are unlikely to fall anytime soon. The uptick in listings should be another motivator for buyers: there’s more to choose from, and improving inventory may bring out more competition from other buyers as we get further into spring. Some buyers have already gotten the memo, with mortgage applications finally increasing after weeks of declines.”

Pending home sales are still down 6% over last year, but analysts say that more buyers are wading into the market.