Redfin Report: Low Demand + Lower Supply = High Prices
- U.S. home prices rose 3% year over year, with double-digit increases in Miami and Milwaukee
- Tepid homebuying demand due to high mortgage rates. Mortgage-purchase applications down 27% YoY. Total number of homes for sale down 18% YoY. New listings down 16% YoY.
Prices are increasing despite tepid homebuying demand, with some buyers still sidelined by stubbornly high mortgage rates: They’re hovering around
Limited inventory is pushing prices up, with so few homes for sale that there are more house hunters than homes on the market in much of the country. The total number of homes for sale is down
“There’s a fair amount of demand for lower-priced single-family homes, which in this area means around
Leading indicators of homebuying activity:
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The daily average 30-year fixed mortgage rate was
7.05% on August 9. For the week ending August 3, the average 30-year fixed mortgage rate was6.9% , slightly higher than a week earlier but slightly lower than the half-year high hit three weeks earlier. -
Mortgage-purchase applications during the week ending August 4 declined
3% from a week earlier, seasonally adjusted. Purchase applications were down27% from a year earlier. -
The seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other homebuying services from Redfin agents—was down
6% from a month earlier to its lowest level since March. It was down5% from a year earlier. -
Google searches for “homes for sale” were down roughly
8% from a month earlier during the week ending August 5, and down about11% from a year earlier. -
Touring activity as of August 6 was up
7% from the start of the year, compared with a5% decrease at the same time last year, according to home tour technology company ShowingTime.
Key housing market takeaways for 400+
Unless otherwise noted, this data covers the four-week period ending August 6. Redfin’s weekly housing market data goes back through 2015. For bullets that include metro-level breakdowns, Redfin analyzed the 50 most populous
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The median home sale price was
, up$381,225 3% from a year earlier. That’s the biggest increase since November. -
Sale prices increased most in
Miami (12.6% YoY),Milwaukee (12.1% ),West Palm Beach, FL (9.2% ),Cincinnati (8.9% ) andSan Diego (8.6% ). -
Home-sale prices declined in 12 metros, with the biggest drops in
Austin, TX (-10.6% YoY),San Francisco (-6.3% ),Phoenix (-3.6% ),Fort Worth, TX (-3% ) andLas Vegas (-2.6% ). -
The median asking price of newly listed homes was
, up$386,748 2.5% from a year earlier. -
The monthly mortgage payment on the median-asking-price home was
at a$2,602 6.9% mortgage rate, the average for the week ending August 3. That’s down about1% ( ) from the record high hit three weeks earlier, but up$39 18% from a year earlier. -
Pending home sales were down
13.2% year over year, continuing a 15-month streak of double-digit declines. -
Pending home sales fell in all but three of the metros Redfin analyzed. They declined most in
Providence, RI (-28.9% YoY),Newark, NJ (-26.4% ),Boston (-24.9% ),Seattle (-24.5% ) andWarren, MI (-24.3% ). They increased1.9% inLas Vegas , and roughly1% inAustin, TX andWest Palm Beach . -
New listings of homes for sale fell
16.5% year over year. -
New listings declined in all metros Redfin analyzed. They fell most in
Las Vegas (-37.5% YoY),Phoenix (-33.1% ),Chicago (-26.7% ),Oakland, CA (-25.3% ) andNew Brunswick, NJ (-24.3% ). -
Active listings (the number of homes listed for sale at any point during the period) dropped
17.9% from a year earlier, the biggest drop since February 2022. Active listings were essentially flat from a month earlier; typically, they post month-over-month increases at this time of year. - Months of supply—a measure of the balance between supply and demand, calculated by the number of months it would take for the current inventory to sell at the current sales pace—was 2.7 months, roughly the same as a year earlier. Four to five months of supply is considered balanced, with a lower number indicating seller’s market conditions.
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43.6% of homes that went under contract had an accepted offer within the first two weeks on the market, up from41% a year earlier. - Homes that sold were on the market for a median of 28 days, up from 24 days a year earlier.
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35.3% of homes sold above their final list price, down from42% a year earlier. -
On average,
6.1% of homes for sale each week had a price drop, down from6.5% a year earlier. -
The average sale-to-list price ratio, which measures how close homes are selling to their final asking prices, was
99.9% . That’s down from100.5% a year earlier.
To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-low-demand-lower-supply-high-prices
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 sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. 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 in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a
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/20230810305229/en/
Redfin Journalist Services:
Kenneth Applewhaite, 206-588-6863
press@redfin.com
Source: Redfin
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