According to a new report from Redfin, housing supply is gradually gaining momentum as the number of homes for sale begins to increase and pending sales continue a steady and seasonal decline. In turn, prices will stop rising as rapidly as they have been and an increasing number of homes for sale will see price drops.
Pending home sales were up 9% year over year, representing the smallest increase since the four-week period ending June 28, 2020. Pending sales were down 11% from their 2021 peak during the four-week period ending May 30, compared to a 4% decrease over the same period in 2019.
New listings of homes for sale were up 2% from a year earlier. The number of homes being listed is in a typical seasonal decline, down 8% from the 2021 peak during the four-week period ending May 23, compared to a 12% decline over the same period in 2019.
Active listings (the number of homes listed for sale at any point during the period) fell 29% from 2020 – the smallest decline since the four-week period ending January 17 – and have climbed 10% since their 2021 low during the four week period ending March 7.
For the four-week period ending July 18, the median home-sale price increased 20% year over year to $364,160 – a record high – across 400+ U.S. metro areas
Asking prices of newly listed homes were up 12% from the same time a year ago to a median of $360,975. This is shy of the all-time high set during the four-week period ending June 27, and asking prices have been basically flat since late May.
Fifty-two percent of homes that went under contract had an accepted offer within the first two weeks on the market, which was well above the 44% rate during the same period a year ago, but down 5 percentage points from the high point of the year, set during the four-week period ending March 28.
Thirty-eight percent of homes that went under contract had an accepted offer within one week of hitting the market, which was up from 32% during the same period a year earlier but down 5.5 percentage points from the high point of the year, set during the four-week period ending March 28.
Furthermore, 55% of homes sold above list price, up from 29% a year earlier. This measure is plateauing, having been 54% to 55% since the four-week period ending June 27. The share of homes for sale with price drops rose to 4.3%, continuing to surpass 2020 level, and climbing closer to 2019 levels (4.7% at this time in 2019).
To view the full report, click here.
