Redfin Reports Pending Home Sales Fall 35%, Largest Drop in at Least Seven Years
Pending home sales in the U.S. experienced a significant decline of 35% year-over-year during the four weeks ending
This marks the lowest number of homes under contract for any October since 2015. Key indicators of homebuying activity include a rise in 30-year mortgage rates to 7.08% and a 42% year-over-year drop in mortgage purchase applications. The median home sale price is
- The median home sale price increased 5% year-over-year.
- New listings of homes for sale saw a decline of 21%, indicating potential market tightening.
- Pending home sales declined 35% year-over-year, marking the largest decrease since at least January 2015.
- Monthly mortgage payments on the median asking price home rose to a record
$2,542 , up 48% from a year ago. - Mortgage purchase applications fell to the lowest level since 2014, down 42% from a year earlier.
Fewer homes are pending sale than in any October since at least 2015. Six metro areas are now experiencing year-over-year price decline.
"Until this month, the pullback in the housing market could be described as something of a return to pre-pandemic conditions before sub
"Every set of market conditions comes with its own tradeoffs," said Sacramento Redfin real estate agent
Leading indicators of homebuying activity:
-
For the week ending
October 27 , 30-year mortgage rates rose to7.08% . -
Fewer people searched for “homes for sale” on Google. Searches during the week ending
October 22 were down28% from a year earlier. -
The seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—declined
11% in the past four weeks to its lowest point sinceMay 2020 . The index was down35% year over year. -
Touring activity as of
October 23 was down27% from the start of the year, compared to a7% increase at the same time last year, according to home tour technology company ShowingTime. -
Mortgage purchase applications during the week ending
October 21 were down2% week over week, seasonally adjusted, to the lowest level since 2014. Purchase applications were down42% from a year earlier.
Key housing market takeaways for 400+
Unless otherwise noted, this data covers the four-week period ending
-
The median home sale price was
, up$365,725 5% year over year, but down7% from a record high of in June.$392,250 -
Home-sale prices fell from a year earlier in six
U.S. metro areas: Prices declined5% year over year inSan Francisco ,3% inLake County, IL ,2% inOakland, CA and less than1% inSan Jose, CA ,Philadelphia andFrederick, MD . -
Among metro areas with at least 500 pending sales during the period, pending sales fell the most from a year ago in
Los Angeles (-59% ),Las Vegas (-56% ),Miami (-50% ),Seattle (-50% ),Jacksonville, FL (-48% ) andPortland, OR (-46% ). -
The median asking price of newly listed homes was
8% higher than a year ago at , but down$377,225 7% from a record high of in May.$399,975 -
The monthly mortgage payment on the median-asking-price home climbed to a record
at the current$2,542 7.08% mortgage rate, up48% from a year earlier, when mortgage rates were$1,712 3.14% and up from a recent low of during the four-week period ending$2,187 August 14 . -
Pending home sales were down
35% year over year, the largest decline since at leastJanuary 2015 , as far back as this data goes. -
New listings of homes for sale were down
21% from a year earlier, the largest decline sinceMay 2020 . -
Active listings (the number of homes listed for sale at any point during the period) were
4% above a year earlier but fell1% from the prior four-week period. -
Months of supply—a measure of the balance between supply and demand, calculated by dividing the number of active listings by closed sales—increased to 3.1 months, the highest level since
June 2020 . -
34% of homes that went under contract had an accepted offer within the first two weeks on the market, little changed from the prior four-week period but down from40% a year earlier. -
23% of homes that went under contract had an accepted offer within one week of hitting the market, little changed from the prior four-week period but down from28% a year earlier. - Homes that sold were on the market for a median of 34 days, up a full week from 27 days a year earlier and the record low of 17 days set in May and early June.
-
29% of homes sold above list price, down from44% a year earlier and the lowest level sinceFebruary 2021 . -
On average, a record
7.9% of homes for sale each week had a price drop, up from3.8% a year earlier. -
The average sale-to-list price ratio, which measures how close homes are selling to their final asking prices, fell to
98.9% from100.5% a year earlier. This was the lowest level sinceAugust 2020 .
To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-pending-home-sales-record-decline/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), 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 can take an instant cash offer from Redfin or 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. Since launching in 2006, we've saved customers more than
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006049/en/
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Source: Redfin
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