Redfin Report: For the First Time in Nearly 2 Years, There’s No Major American Metro Where Home Prices Are Falling

Rhea-AI Summary

Redfin reports that for the first time in nearly 2 years, there is no major American metro where home prices are falling. The median home-sale price rose or stayed the same in all 50 of the most populous U.S. metros during the four weeks ending April 28, with the nationwide median sale price reaching $383,188, up 4.8% year over year. Mortgage rates are also on the rise, hitting a five-month high, leading to a record median monthly housing payment of $2,890, up 15% year over year. The increase in home prices was driven by affluent metros and some more affordable places like Anaheim, CA, and Detroit. Low inventory levels continue to drive up prices, with new listings still below typical levels. Despite rising mortgage rates causing a decline in homebuying demand, there are still enough buyers to keep prices elevated, leading to a holding pattern in mortgage rates following the recent Fed meeting.

Positive

• The median home-sale price rose in all 50 major U.S. metros, reaching $383,188, up 4.8% year over year, signaling a strong housing market and potential positive returns for homeowners and investors.

Negative

• The rising mortgage rates and record median monthly housing payment of $2,890, up 15% year over year, may negatively impact affordability for potential homebuyers, leading to a softening demand in the housing market.

Continually rising mortgage rates are further eroding affordability—and this week's Fed meeting confirmed that mortgage rates are likely to hold steady for the foreseeable future

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) —The median home-sale price rose from a year earlier or stayed the same in all 50 of the most populous U.S. metros during the four weeks ending April 28, the first time that has happened since July 2022. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Nationwide, the median sale price rose to a near-record $383,188, up 4.8% year over year. Mortgage rates also continued climbing, with the weekly average hitting its highest level in five months. High prices and rates drove the median monthly housing payment to a record $2,890, up 15% year over year.

Home-price increases were driven by affluent metros and a pair of more affordable places: Anaheim, CA, where prices rose over 20% year over year, took the top spot. It’s followed by Detroit (14.9%), San Jose, CA (13.6%), West Palm Beach, FL (13.4%) and New Brunswick, NJ (12.8%). The metros with the smallest price increases were in Texas and Florida: Dallas (unchanged), Austin (0.3%), San Antonio (0.6%), Fort Worth (1.9%), and Tampa (2.2%).

Low inventory is driving up prices. New listings are up 15% year over year, but they’re still well below typical April levels: There were fewer new listings this April than any year on record except 2023 and 2020. The year-over-year increase is also inflated because of the Easter effect; Easter didn’t fall into the four weeks included in this year’s data, but the holiday did fall into last year’s comparable time period. Some homeowners are hesitant to list their homes because economic indicators point to interest rates staying higher for longer than expected, potentially exacerbating the mortgage-rate lock-in effect.

Homebuying demand is softening as rates rise. Some Redfin agents are reporting that the recent uptick in mortgage rates is scaring buyers away, and mortgage-purchase applications declined 2% week over week. Still, there are enough buyers out there to keep prices propped up: Redfin's Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—is up 3% from a month ago, sitting near its highest level since August.

This week’s economic news keeps mortgage rates in a holding pattern. At their May 1 meeting, the Fed held interest rates steady, as expected, but kept open the possibility of rate cuts later this year. “The Fed meeting is unlikely to push mortgage rates down—but the good news is that it won’t push them up, either, which could have happened if the Fed took 2024 rate cuts off the table,” said Redfin Economic Research Lead Chen Zhao. “Even though housing costs shouldn’t climb much more, they will remain elevated for the foreseeable future, which could push more buyers away. But for serious house hunters who can afford today’s mortgage rates and find a home they love, jumping on it now isn’t a bad idea, given the fact that inventory is low and costs aren’t dropping anytime soon.”

For more of Redfin economists’ takes on the housing market, including how current financial events are impacting mortgage rates, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity
	Value (if applicable)	Recent change	Year-over-year change	Source
Daily average 30-year fixed mortgage rate	7.41% (May 1)	Up from 6.91% one month earlier; near highest level since November 2023	Up from 6.73%	Mortgage News Daily
Weekly average 30-year fixed mortgage rate	7.17% (week ending April 25)	Up from 6.79% a month earlier; highest level since November 2023	Up from 6.43%	Freddie Mac
Mortgage-purchase applications (seasonally adjusted)		Decreased 2% from a week earlier (as of week ending April 26)	Down 14%	Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted)		Up 3% from a month earlier (as of week ending April 28)	Down 9%	Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Touring activity		Up 33% from the start of the year (as of April 28)	At this time last year, it was up 28% from the start of 2023	ShowingTime, a home touring technology company
Google searches for “home for sale”		Unchanged from a month earlier (as of April 29)	Down 14%	Google Trends

Key housing-market data

U.S. highlights: Four weeks ending April 28, 2024 Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.
	Four weeks ending April 28, 2024	Year-over-year change	Notes
Median sale price	$383,188	4.8%	Just $73 shy of all-time high
Median asking price	$420,450	7.7%	All-time high; biggest increase since Sept. 2022
Median monthly mortgage payment	$2,890 at a 7.17% mortgage rate	14.7%	All-time high
Pending sales	88,408	-3.4%	The decline in pending sales would likely be bigger if not for the Easter effect: Easter didn’t fall into the 4-week period ending April 28, 2024, but it did fall into last year’s comparable period
New listings	101,065	15.2%	Biggest increase in nearly 3 years, though that’s partly because of the Easter effect: Easter didn’t fall into the 4-week period ending April 28, 2024, but it did fall into last year’s comparable period
Active listings	856,350	11.8%
Months of supply	3.4 months	+0.6 pts.	4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions
Share of homes off market in two weeks	43.9%	Down from 47%
Median days on market	34	Unchanged
Share of homes sold above list price	30.4%	Essentially unchanged
Share of homes with a price drop	6.2%	+1.9 pts.	Highest level since Nov. 2022
Average sale-to-list price ratio	99.3%	+0.1 pt.

Metro-level highlights: Four weeks ending April 28, 2024 Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.
	Metros with biggest year-over-year increases	Metros with biggest year-over-year decreases	Notes
Median sale price	Anaheim, CA (22.8%) Detroit (14.9%) San Jose, CA (13.6%) West Palm Beach, FL (13.4%) New Brunswick, NJ (12.8%)	Prices were unchanged in Dallas	Increased or stayed the same in all metros
Pending sales	San Jose, CA (15%) Milwaukee (5.5%) Cincinnati (5.1%) Seattle (5.1%) Columbus, OH (4.7%)	Phoenix (-13.8%) Riverside, CA (-12.2%) Atlanta (-11.9%) Houston (-11.8%) Jacksonville, FL (-11.3%)	Increased in 10 metros
New listings	San Jose, CA (53.2%) Oakland, CA (34.4%) Phoenix (28.6%) Seattle (28.4%) Miami (28%)	Milwaukee (-0.3%)	Declined in just 1 metro, partly because of the Easter effect described above

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-price-cost-increases

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502140012/en/

Redfin Journalist Services:

Kenneth Applewhaite, 206-414-8880

press@redfin.com

Source: Redfin

FAQ

What is the current nationwide median sale price for homes in the U.S.?

The current nationwide median sale price for homes in the U.S. is $383,188, up 4.8% year over year.

What was the effect of rising mortgage rates on the median monthly housing payment?

Rising mortgage rates led to a record median monthly housing payment of $2,890, up 15% year over year.

How did low inventory levels impact home prices?

Low inventory levels drove up home prices, with new listings still below typical levels, contributing to the overall increase in median sale prices.

What was the outcome of the recent Fed meeting on mortgage rates?

Following the recent Fed meeting, mortgage rates are in a holding pattern, with the possibility of rate cuts later in the year, impacting the housing market stability.

What are some of the major U.S. metros that experienced the highest year-over-year home-price increases?

Some major U.S. metros that saw significant year-over-year home price increases include Anaheim, CA, Detroit, San Jose, West Palm Beach, and New Brunswick.

How did the recent uptick in mortgage rates affect homebuying demand?

The recent increase in mortgage rates caused a decline in homebuying demand, with some potential buyers being scared away, impacting the overall demand in the housing market.