According to a new report from Redfin, new home listings in the U.S. have dropped by 22.4% year over year, resulting in one of the biggest declines since the pandemic began. Homeowners are hesitant to sell due to increasing mortgage rates and limited options for homes on the market. As a result, nearly half of the listed homes are selling within two weeks of being listed, driving up prices due to competition among buyers.
The U.S. median sale price fell 2.8% annually to $367,053, marking the ninth consecutive four-week period of declining sale prices. However, in cities where new listings are especially rare, home prices have increased, encouraging prospective sellers to enter the market.
The latest report from Redfin has revealed that new home listings in the United States have hit record lows, with a 22.4% year-over-year decline during the four weeks ending April 23. The drop marks one of the largest declines in new listings since the beginning of the pandemic. Homeowners are reportedly reluctant to sell their homes due to increasing mortgage rates and the limited number of options on the market. With fewer homes available for sale, it seems like the logical choice for most homeowners is to stay put.
Despite pending home sales being down 17% from this time last year, the lack of new listings is resulting in homes selling more quickly. According to the report, almost half of listed homes are selling within two weeks of being put on the market, which is the highest portion in almost a year. This competition among buyers created by the scarcity of available homes is keeping prices from falling faster. The U.S. median sale price fell 2.8% annually to $367,053, marking the ninth consecutive four-week period of declining sale prices, according to Redfin.
Redfin’s deputy chief economist, Taylor Marr, explained that high mortgage rates have caused some homebuyers to back out of the market. However, there are still more people looking for a home than there are homes for sale. This is good news for homeowners who want or need to sell their home now. Home sale prices have declined in 29 of the 50 U.S. metro areas analyzed by Redfin. The city with the largest decline in prices is Austin, Texas, which dropped 13.7% year over year. Oakland, California, followed closely with a 13.5% drop, while San Francisco prices fell 12.3%, Anaheim by 10%, and Sacramento by 9.4%.
However, in some cities where new listings are particularly rare, sellers who price their homes in line with the market are attracting multiple offers, Marr said. These propped-up home prices and values bode well for the future of the housing market because they may eventually lure more prospective sellers off the sidelines.
As for cities where home sale prices increased, Fort Lauderdale, Florida, saw the biggest jump, with prices rising 10% from last year. Miami followed with an 8.7% increase, and Cleveland prices were up 7.9%. Ohio’s two other largest cities, Cincinnati (up 7.5%) and Columbus (up 7%), also saw higher home prices.
The lack of new home listings in the U.S. has resulted in record low numbers and is pushing up prices due to competition among buyers. While the decline in sale prices continues, some cities with rare new listings are seeing a rise in home prices. This could encourage prospective sellers to enter the market, potentially changing the current dynamic.
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