Early indicators that national home price growth could soften soon are popping up more frequently now.
Although home sale prices rose 4.4% year-over-year nationally during the four weeks ending June 2, according to this new Redfin report, they declined in four major U.S. metros within the same time frame.
The state of Texas is home to three of the four aforementioned metros: Austin (-2.9%), San Antonio (-1.2%), and Fort Worth (-1.2%). The fourth was Portland, OR (-0.9%).
The last time prices fell in four or more metros was in January, according to Redfin.
Signs that price growth could soften on a national scale in the foreseeable future include the fact that 6.4% of U.S. home sellers cut their asking price, on average, in the four weeks ending May 26. That’s the highest share since Nov. 2022.
Additionally, the typical active listing has been on the market for 46 days, up 2.3% year over year. This is the biggest increase in nine months, suggesting home listings are growing stale faster than they were a year ago.
That could be due in part to high mortgage rates and elevated housing costs, as the Federal Reserve attempts to bring inflation down to its 2% goal.
“There’s no getting around the fact that it’s expensive to buy a home right now, but some people are having luck negotiating with sellers,” said Bonnie Phillips, a Redfin Premier agent in Cleveland. “I've seen buyers get a home under asking price when it has been on the market for a few weeks. That's especially true when their agent presents market data that supports a lower market value, like comps of similar homes nearby that have sold for less, or fewer than usual online views or tours. Other buyers are finding creative ways to afford a home, like buying a duplex, living in one unit and renting out the other.”
Pending home sales fell 3.8% YOY, the biggest decline in three months, Redfin reported, and mortgage-purchase applications declined 4% week over week.
