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- Home prices in March jumped 17.3% YTY
- 12.6 fewer homes are on the market than 2021
- High prices, rates could drive buyers away
The housing market started like a lion in March, with prices setting a new benchmark for the month.
But sales may be leaving the month like a lamb, with early signs that the market may be cooling off.
A new report from Redfin found the average home price in March was $412,700, a new record for the first month of spring.
That price reflects a 6.2% jump from February and a 17.3% hike year-to-year.
“Although pricey coastal markets began showing early signs of a slowdown in late March, nationwide sales data for the full month reflects the hottest March market on record, since homes that sold last month mostly went under contract in February,” Redfin chief economist Daryl Fairweather said.
But Redfin’s report also hinted the market could soon slow down unless inventory picks up — the seasonal adjusted number of sales fell by 3.7%, led by cooldowns in some coastal markets.
Fairweather expects more buyers will leave the market as prices and mortgage rates continue to climb.
“Unfortunately, homeowners are turning their back on the market too,” Fairweather said. “Instead of being motivated to list before prices weaken, potential home sellers may be choosing to wait-out the impending market cooldown.”
One problem for buyers is that housing stock remains down.
Redfin said new listings in March were down 6.2% from 2021. The total number of sales on the market was down 12.6% for the year to an all-time low for March, Redfin said.
In all, the seasonally adjusted active listings in 82 of the 88 largest metros tracked by Redfin dropped from 2021.
The lack of inventory means houses come off the market quickly, and at high prices.
The average time on market was 20 days, down six days from last year. And it sold at 54.3% above list, up 12.3 points year over year.
Median prices jumped in each of the 88 largest metro markets, according to Redfin. Tampa, Florida, saw the biggest increase at 29 percent, followed by Phoenix, Arizona and McAllen Texas, both at 27%.