Redfin Report: Prices Go Up While Demand Goes Down
- Home prices up 4.5% YoY
- Buyers outnumber sellers in many areas
- Mortgage-purchase applications at 28-year low
- High housing costs dampening demand
- Homebuying demand and activity down
- Pending sales down 13.3% YoY
- New listings down 9.3% YoY
- Active listings down 18% YoY
Mortgage-purchase applications are sitting at their lowest level in nearly three decades. But there are so few homes for sale that prices are up
Prices are rising due to a supply shortage: The total number of homes on the market is down
“The market is marching on, especially for turnkey homes,” said Chicago Redfin Premier agent Niko Voutsinas. “If folks can figure out a way to buy instead of rent, they will. Some buyers are cutting back on other expenses to up their housing budgets because they believe home prices are only going to increase. They’re nervous that the minute rates come down, a flood of competition will edge them out. Those buyers typically need to move quickly and offer at or above the asking price if they love a home, because so few listings are hitting the market.”
Leading indicators
Indicators of homebuying demand and activity |
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|
Value (if applicable) |
Recent change |
Year-over-year change |
Source |
Daily average 30-year fixed mortgage rate |
|
Down from a peak of |
Up from |
Mortgage News Daily |
Weekly average 30-year fixed mortgage rate |
|
Down slightly from |
Up from |
Freddie Mac |
Mortgage-purchase applications (seasonally adjusted) |
|
Down |
Down |
Mortgage Bankers Association |
Redfin Homebuyer Demand Index (seasonally adjusted) |
|
Down |
Down |
Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents |
Google searches for “home for sale” |
|
Down |
Down |
Google Trends |
Home touring activity |
|
Down |
|
ShowingTime, a home-touring tech company |
Key housing-market data
Redfin’s national metrics include data from 400+ |
|||
|
Four weeks ending September 3 |
Year-over-year change |
Notes |
Median sale price |
|
|
Biggest increase since October 2022 |
Median asking price |
|
|
Biggest increase since November 2022 |
Median monthly mortgage payment |
|
|
Just |
Pending sales |
83,271 |
- |
Continues 15-month streak of double-digit declines |
New listings |
82,136 |
- |
Smallest decline in over a year, but that’s partly because new listings fell rapidly at this time in 2022 |
Active listings |
798,259 |
- |
Biggest decline since February 2022 |
Months of supply |
2.8 months |
Unchanged |
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 |
|
+0.2 pts. |
|
Median days on market |
29 |
Unchanged |
|
Share of homes sold above list price |
|
-0.1 pt. |
|
Share of homes with a price drop |
|
+0.1 pt. |
|
Average sale-to-list price ratio |
|
Unchanged |
Lowest level in over 3 months |
Metro-level highlights: Four weeks ending September 3, 2023
Redfin’s metro-level data includes the 50 most populous |
|||
|
Metros with biggest year-over-year increases |
Metros with biggest year-over-year declines |
Notes |
Median sale price |
|
|
Declined in just 9 metros |
Pending sales |
n/a |
|
Declined in all metros |
New listings |
|
|
Declined in all but 3 metros |
To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-increase-low-inventory
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
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Redfin Journalist Services:
Kenneth Applewhaite, 206-588-6863
press@redfin.com
Source: Redfin