More homeowners listed their homes this week compared with last week, resulting in a corresponding increase in inventory, according to Redfin.
The firm’s data show that more sellers are listing their homes, but 7% mortgage rates and still-high home prices are pushing down sales.
Despite higher rates, new listings increased 13% year over year during the four weeks ended February 25, the biggest increase in nearly three years, the firm says. Active listings remained flat year-over-year.
The surge in new listings welcome news for homebuyers, who have been battling the dual challenges of low inventory and high mortgage rates for over a year.
But while today’s buyers have a few more homes to choose from, they’re still facing historically high housing costs. The typical homebuyer’s mortgage payment is $2,671, just $47 shy of last October’s record high.
High costs pushed pending sales down 8%, the biggest decline in five months, and mortgage-purchase applications declined for the fourth straight week.
But more house hunters are searching as more homes hit the market. Redfin’s Homebuyer Demand Index–a measure of requests for tours and other services from Redfin agents–is up 10% from a month ago to its highest level since last September.
Pending sales could improve in the next few months if rates don’t increase further and new listings continue to rise.
Photo: Breno Assis
