SEATTLE, July 23, 2021 /PRNewswire/ -- (NASDAQ: RDFN)
—The housing market's supply side is gradually gaining momentum as
homes for sale begin to pile and pending sales continue a steady
and seasonal decline, according to a new report from Redfin
(redfin.com), the technology-powered real estate brokerage.
As both of these trends continue in the weeks ahead, prices will
stop rising as rapidly as they have been and an increasing number
of homes for sale will see price drops.
Key housing market takeaways for 400+ U.S. metro
areas:
Unless otherwise noted, this data covers the
four-week period ending July 18.
Redfin's housing market data goes back through 2012.
Data based on homes listed and/or sold during the
period:
- The median home-sale price increased 20% year over year to
$364,160, a record high.
- Asking prices of newly listed homes were up 12% from the same
time a year ago to a median of $360,975. This is shy of the all-time high set
during the four-week period ending June
27, and asking prices have been basically flat since late
May.
- Pending home sales were up 9% year over year, the smallest
increase since the four-week period ending June 28, 2020. Pending sales were down 11% from
their 2021 peak during the four-week period ending May 30, compared to a 4% decrease over the same
period in 2019.
- New listings of homes for sale were up 2% from a year earlier.
The number of homes being listed is in a typical seasonal decline,
down 8% from the 2021 peak during the four-week period ending
May 23, compared to a 12% decline
over the same period in 2019.
- Active listings (the number of homes listed for sale at any
point during the period) fell 29% from 2020—the smallest decline
since the four-week period ending January 17—and have climbed 10%
since their 2021 low during the four week period ending
March 7.
- 52% of homes that went under contract had an accepted offer
within the first two weeks on the market, well above the 44% rate
during the same period a year ago, but down 5 percentage points
from the high point of the year, set during the four-week period
ending March 28.
- 38% of homes that went under contract had an accepted offer
within one week of hitting the market, up from 32% during the same
period a year earlier, but down 5.5 percentage points from the high
point of the year, set during the four-week period ending
March 28.
- Homes that sold were on the market for a median of 15.2 days,
up from the all-time low of 15 days that had held for the previous
month, and down from 37 days a year earlier.
- 55% of homes sold above list price, up from 29% a year earlier.
This measure is plateauing, having been 54-55% since the four-week
period ending June 27.
- The share of homes for sale with price drops rose to 4.3%,
continuing to surpass 2020 level, and climbing closer to 2019
levels (4.7% at this time in 2019).
- The average sale-to-list price ratio, which measures how close
homes are selling to their asking prices, decreased less than a
tenth of a percentage point from the peak during the four-week
period ending July 11 to 102.3%. In
other words, the average home sold for 2.3% above its asking price.
This measure is 3.5 percentage points higher than a year
earlier.
Other other leading indicators of homebuying
activity:
- Mortgage purchase applications decreased 6% week over week
(seasonally adjusted) during the week ending July 16. For the week ending July 22 30-year mortgage rates fell to 2.78%, the
lowest level since early February.
- From January 1 to July 18, home
tours went up 21%, compared to a 48% increase over the same period
last year according to home tour technology company
ShowingTime.
- The seasonally adjusted Redfin Homebuyer Demand Index—a measure
of requests for home tours and other services from Redfin
agents—dipped slightly during the week ending July 18, and was up 16% from a year earlier.
For the single week ending July
18, 4.9% of listings had price drops, on par with 2019
levels. Price drops are more common in places such as Phoenix, Austin and Bend,
OR where prices rose the fastest due to an influx of
Californians during the pandemic.
Even with the share of homes with price drops increasing,
overall prices continue to rise. One factor contributing to that is
falling mortgage rates, which hit their lowest level this week
(2.78%) since early February.
The Redfin Homebuyer Demand Index remains higher than a year ago
and has been trending up in recent weeks, suggesting that interest
in homebuying remains high (real estate searches on Google trends
also show a recent bump). However, mortgage purchase applications
are trending down. Growth in new listings, which are still up 2%
from a year ago, should offer some relief to potential
homebuyers.
"Just as buyers are pulling back, more listings are hitting the
market," said Redfin Chief Economist Daryl
Fairweather. "I'm optimistic this will create conditions for
a little bit of rain in this inventory drought. A homeowner who is
thinking of selling to buy again is going to have a much easier
time now than they would have back in March. That's because it's
becoming less competitive to buy and it is still a historically
good time to sell."
To view the full report, including charts and methodology,
please visit:
https://www.redfin.com/news/housing-market-update-pending-sales-declining/
About Redfin
Redfin (www.redfin.com) is a
technology-powered real estate broker, instant home-buyer (iBuyer),
lender, title insurer, and renovations company. 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. Since launching in 2006, we've saved
customers more than $1 billion in
commissions. We serve more than 95 markets across the U.S. and
Canada and employ over 4,100
people.
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.
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SOURCE Redfin