The number of homes for sale fell 8% during the four weeks ending June 5, the smallest year-over-year decline since January 2020. New listings dropped 1%.
The Redfin Homebuyer Demand Index also saw a 12% decline in tours, offers and other home buyer requests. New listings fell 2% during the four-week period and 21% of sellers dropped their list price, the second-highest share on record, going back through 2015. This was the eighth consecutive week of declines in the index.
“Sellers are losing control of the housing market as homes that are overpriced and/or less desirable are increasingly having price reductions and taking longer to sell,” Redfin deputy chief economist Taylor Marr said. Marr hinted that although homebuying activity is at a lull, buyers may jump back into the market when prices and interest rates begin to stabilize.
In fact, the report found that fewer people searched for “homes for sale” on Google, marking a 10% decrease in searches from a year earlier.
The report also cited data from the top metro areas in the U.S., especially highlighting that the median home sale price was up 15% year over year to a record $401,372. The median asking price for homes was up 17% from last year.
However, the report also pointed out that homes are selling quicker year-over-year. Homes that sold were on the market for a record-low median of 15 days, down from 18 days a year earlier. 56% of homes sold above list price, up from 52% a year earlier.
Other takeaways:
- Touring activity was only 0.1% above the start of the year compared to 25.1% at this time last year, according to home tour technology company ShowingTime.
- Mortgage purchase applications were down 21% from a year earlier, while the seasonally-adjusted index was down 7% week over week during the week ending June 3.
- For the week ending June 9, 30-year mortgage rates rose to 5.23%.
- The monthly mortgage payment on the median asking price home increased to $2,428 at the current 5.23% mortgage rate.
- 36% of homes that went under contract had an accepted offer within one week of hitting the market, down from 38% a year earlier.
