After June’s rapid mortgage-rate hike, affordability is taking center stage among homeowners, buyers and sellers.
Power Shifting Towards Buyers
Redfin’s chief economist, Daryl Fairweather, said, “Data on home-tours, offers and mortgage purchase applications suggest that homebuyers have noticed the shift in power and are no longer leaving the market in droves. Buyers coming back (to the market) will provide support to the housing market, but between now and the end of the year, I think the power will continue to shift towards buyers, resulting in mild price declines from month to month.”
During the four-week period ending June 26, the median asking price of newly listed homes declined -1.5% from the all-time peak it had reached in the spring. Also, a record-high share of sellers dropped their asking prices.
Please choose one answer:
1) I am ready to join EXP Realty.
2) I am interested in EXP Realty and need more info.
3) I am not interested in EXP Realty.
* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP.
What does this all mean? Sellers are paying attention to buyers’ concerns about affordability.
Leading Indicators of Homebuying Activity in June
- 30-year mortgage rates fell slightly to 5.7% for the week ending June 30
- “Homes for sale” searches on Google were down -7% y/y during the week ending June 25
- Touring activity dropped -3% as of June 26 from the start of the year, compared to an increase of +24% last year at this same time, according to ShowingTime
- The seasonally-adjusted Redfin Homebuyer Demand Index plunged -15% y/y during the week ending June 26 while increasing +7% w/w
- Mortgage purchase applications dropped -24% y/y while the seasonally-adjusted index inched up +0.1% w/w during the week ending June 17
Key Market Takeaways (covers four-week period ending June 26)
- Median home sale price jumped +14% y/y to record $399,249
- Median asking price of newly listed home jumped +15% y/y to $405,547
- Monthly mortgage payment on median asking price home hit $2,459 at mortgage rate of 5.7%, an increase of +45% from $1,694 one year ago when rates were 2.98%
- Pending home sales plummeted -13% y/y, the largest decline since May 2020
- New listings down -7% y/y
- Active listings down -8% y/y, the smallest decline since March 2020
- 46% of for-sale homes went under contract within first two weeks of being on the market
- DOM – 17 days
- 54% of homes sold above list price
- 6.5% of for-sale homes had a price drop
Thanks to Redfin.
URGENT! Exclusive Invite: Join Premier Coaching for FREE! You read that correctly, Premier Coaching for the first 30 days is 100%, no strings attached FREE. Here is what you get: DISC Personality Test, Seller and Buyer Scripts, Presentations, Lead Generation Systems, Market Shift Plan, Real Estate Treasure Map, Members Only Community Groups (and a ton more). The best part is you will have a DAILY Live Coaching Call with a Harris Certified Coach. Yep, you read that correctly….every weekday you will attend a semi-private coaching session with your coach. All of this is 100% FREE. Of course, you want to join Premier Coaching. There is Zero Risk and joining costs you nothing. This is the Real Estate Success system you need in this quickly changing market. Join Premier Coaching NOW.