Inventory is loosening up, according to the latest data from Redfin.
New listings surged by 13% nationwide during the four weeks ending March 3rd, marking the most substantial increase in nearly three years, according to Redfin. This boost in new listings helped counter the trend of declining inventory, with the total number of homes for sale rising by 1.7% following eight consecutive months of declines.
Amidst these encouraging trends, this week's pricing data offers some rays of hope for house hunters. Asking prices for new listings experienced their smallest increase in approximately two months, accompanied by a notable development – 5.5% of home sellers dropped their asking price, marking the highest share for any February since at least 2015. However, high mortgage rates have pushed the median monthly housing payment to $2,694, just $23 shy of the all-time high.
Despite these challenges, final sale prices have seen a significant year-over-year increase of 5.3%, one of the most substantial rises in a year-and-a-half. Nevertheless, experts anticipate that price growth for new listings will lose momentum, potentially leading to a decline in final sale prices in the near future.
With spring approaching, house hunters are actively exploring options and applying for mortgages. Touring activity has increased by 23% since the beginning of the year, compared to a 14% increase during the same period last year, while mortgage-purchase applications have spiked by 11% week-over-week. However, this early-stage buying activity has yet to translate into a boost in sales, with pending sales down by 6% year over year.
“There have been two major obstacles for homebuyers over the last year: Low inventory and high housing costs,” Redfin Economic Research Lead Chen Zhao said. “Now, the first barrier is starting to come down as more supply comes on the market. Housing costs are still high, but they’re likely to come down a bit as mortgage rates gradually decline through the year and price growth loses some steam.”
As the housing market continues to evolve, these positive trends offer a glimmer of hope for both buyers and sellers, signaling a potential shift towards a more balanced and accessible real estate landscape.
