A new report from Redfin states that the typical home in the United States is selling for roughly $383,000, only about $4,000 less (-1%) than the all-time high set last June. That’s the smallest year-over-year drop in nearly four months.
Additionally, this is just the second time since last August the sale-to-list price ratio has hit 100%. In other words, the average home is now selling for its asking price.
A lack of homes for sale is keeping prices afloat. New listings fell 27% from a year earlier during the four weeks ending June 25, the biggest drop since the start of the pandemic. That has contributed to the total number of homes for sale declining 11%, the first double-digit drop in over a year.
Inventory is falling because of high mortgage rates, with many homeowners staying put to hang onto their comparatively low rates. Although the average 30-year mortgage rate has inched down in recent weeks, it’s still near 7%, more than double 2021’s record-low levels.
High rates are also deterring homebuyers, but they still outnumber home sellers. Pending home sales are down 15%, significantly smaller than the drop in new listings. That means buyers are snapping up inventory faster than it’s being listed, which is keeping home prices elevated.
“Buyers should keep in mind that desirable homes are getting multiple offers and selling above asking price,” says Andrea Chopp, a Redfin Premier agent in Oakland, Calif. “And sellers should know that their home will sell if they price it fairly and put effort into marketing. Things like making small repairs and staging are important again.”
Leading indicators of homebuying activity:
- Home-sale prices declined in 25 metros, with the biggest drops in Austin, TX (-11% YoY), Las Vegas (-8.7%), Detroit (-8.4%), Oakland, CA (-7.5%) and Phoenix (-6.9%);
- Sale prices increased most in Providence, RI (8.8%), Milwaukee (8.1%), Miami (7.3%), Fort Lauderdale, FL (6%) and Cincinnati (5.1%);
- The monthly mortgage payment on the median-asking-price home was $2,630 at a 6.67% mortgage rate. That’s down slightly from the record high hit a month earlier, but up 9% ($206) from a year earlier;
- Homes that sold were on the market for a median of 27 days, the shortest span in 10 months. That’s up from a near-record low of 19 days a year earlier.
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