Lopsided market beginning to come into balance. New listings beginning to rise.
US Housing Market Slowly Coming into Balance
In a new report by Redfin, new listings of for-sale homes increased +4% y/y in the four weeks ending July 4. This is the first time since the beginning of 2021 that new listings of for-sale homes exceeded 2019 new for-sale listing levels.
Pending Home Sales Down During Same Time Period
Simultaneous to this rise in for-sale listings, pending home sales registered its smallest year-over-year increase of 17% in nearly one year, according to Redfin. Comparatively, pending home sales were down -6% to the four-week period that ended May 30.
Daryl Fairweather, Redfin’s chief economist, said, “Buyers don’t have the same sense of urgency that they did at the beginning of (this) year.” In fact, Fairweather emphasized that, “Many buyers have backed away for the housing market and are waiting until more and better homes are listed.”
Market Beginning Slight Tilt Towards Buyers
Though the housing market is still considered to be a seller’s market. Fairweather said, “With more new listings starting to come on the market, buyers who threw in the towel may want to look again because the market is tilting more in their favor.”
Mortgage rates have again dropped below 3% and there are no indications that mortgage interest rates will rise in the near future. Along with those low interest rates, asking prices are beginning to stabilize as well.
Current Market Specifics
According to Redfin, the median home price hit $364,430 for the four-week period ending July 4. This $364,430 is yet again another record high and a year-over-year increase of +22%.
Asking prices also jumped +12% y/y.
The median home spent 15 days on the market in the four -week period ending July 4, down from last year’s 39 DOM figure.
55% of the homes sold in the four-week period ending July 4 were sold above their respective asking price, a year-over-year jump of 27%.
Thanks to Redfin and MansionGlobal.