Redfin Reports a Shrinking Pool of Buyers Snatch Up Homes at Record Pace
Demand for homes is falling, but homes are still selling fast as the buyers who remain rush to beat rapidly rising mortgage rates
Pending sales fell
“Rising mortgage rates have taken a notable bite out of demand,” said Redfin Chief Economist
The share of homes for sale with price drops shot up to a seven-month high of
“We are seeing more price drops in recent weeks and homebuyers are starting to find some relief from competition,” said Salt Lake City Redfin real estate agent
Leading indicators of homebuying activity:
-
Fewer people searched for “homes for sale” on Google—searches during the week ending
May 7 were down6% 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—was down
7% year over year during the week endingMay 8 . It dropped19% in the past four weeks, compared with an11% decrease during the same period a year earlier. -
Touring activity from the first week of January through
May 8 was 30 percentage points behind the same period in 2021, according to home tour technology company ShowingTime. -
Mortgage purchase applications were down
8% from a year earlier, while the seasonally adjusted index increased5% week over week during the week endingMay 6 . -
For the week ending
May 12 , 30-year mortgage rates increased to5.3% —the highest level sinceJune 2009 .
Key housing market takeaways for 400+
Unless otherwise noted, this data covers the four-week period ending
-
The median home sale price was up
17% year over year—the biggest increase since August—to a record .$397,356 -
The median asking price of newly listed homes increased
17% year over year to , a new all-time high.$411,350 -
The monthly mortgage payment on the median asking price home rose to a record high of
at the current$2,427 5.3% mortgage rate. This was up44% —an all-time high—from a year earlier, when mortgage rates were$1,685 2.94% . -
New listings of homes for sale were down
5% from a year earlier, and have been down year over year for a majority of the time sinceSeptember 2021 . -
Active listings (the number of homes listed for sale at any point during the period) fell
17% year over year. -
56% of homes that went under contract had an accepted offer within the first two weeks on the market, up from54% a year earlier, down less than a percentage point from the record high during the four-week period endingMarch 27 . -
42% of homes that went under contract had an accepted offer within one week of hitting the market, up from41% a year earlier, down less than a percentage point from the record high during the four-week period endingMarch 27 . - Homes that sold were on the market for a record-low median of 15 days, down from 20.2 days a year earlier.
-
A record
57% of homes sold above list price, up from48% a year earlier. -
On average,
4% of homes for sale each week had a price drop. Overall,16.1% dropped their price in the past four weeks, up from11.7% a month earlier and9.2% a year ago. This was the highest share since late October. -
The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to an all-time high of
102.8% . In other words, the average home sold for2.8% above its asking price. This was up from101.3% a year earlier.
To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-fewer-buyers-faster-sales/
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
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Source: Redfin