Several metrics that reflect a cooling market are actually leveling offamong them, housing supply and the share of sellers slashing their list pricesas would-be sellers cool off in reaction to dampened homebuyer demand
Fewer homeowners are listing their homes because of ebbing homebuyer demand. Thats hampering the recent growth in housing supply that is forcing sellers to slash their prices. The amount of virginia homes during the a month ending August 14 fell slightly from the last four-week period, the initial decline because the start of year, as new listings plummeted 14% from the year earlierthe largest annual drop since June 2020.
With fewer homes hitting the marketplace, the sellers who remain arent facing just as much competition from other sellers. Consequently, the share of home listings with price reductionsa key gauge of a cooling marketis no more surging and contains leveled off at its record high. The share of listings with price cuts can also be plateauing because sellers are adjusting to the cooler market and pricing more in-line with buyer expectations from the get-go. Following months of declines, the share of homes selling inside a week has leveled off at around 25%, another sign that the marketplace slowdown is easing.
Many homeowners have already been reluctant to place their houses on the market throughout a market slowdown, that is now holding back inventory growth, said Deputy Chief Economist Taylor Marr. Which means buyers have fewer homes to pick from and could lose a few of their newfound bargaining power, that allows sellers to keep their list prices rather than needing to cut them.
Leading indicators of homebuying activity:
- For the week ending August 18, 30-year mortgage rates fell to 5.13%. Thats down from the 2022 most of 5.81% but up from 3.22% in the beginning of the year.
- Fewer people sought out virginia homes on Googlesearches through the week ending August 13 were down 17% from the year earlier, but up 16% from late May.
- The seasonally-adjusted Redfin Homebuyer Demand Indexa way of measuring requests for home tours along with other home-buying services from Redfin agentswas down 14% year over year through the week ending August 14.
- Touring activity by August 14 was down 5% right away of the entire year, in comparison to a 14% increase simultaneously last year, in accordance with home tour technology company ShowingTime.
- Mortgage purchase applications were down 18% from the year earlier through the week ending August 12, as the seasonally-adjusted index was down 1% week over week.
Key housing marketplace takeaways for 400+ U.S. metro areas:
Unless otherwise noted, this data covers the four-week period ending August 14. Redfins weekly housing marketplace data dates back through 2015.
- The median home sale price was $373,750, up 7% year over year. Prices have declined 5.5% from the record most of $395,373 hit through the four-week period ending June 19. This past year, they rose 0.6% through the same period.
- Only two metro areas saw a year-over-year decline in the median home sale price: Oakland, CA, where prices fell 1.5% to $926,000 and SAN FRANCISCO BAY AREA, where prices were down 2.8% to $1,463,125.
- The median price tag of newly listed homes increased 11% year over year to $385,725. Asking prices are down 4.7% from the all-time high set through the four-week period ending May 22. This past year through the same period these were down just 0.3%.
- The monthly mortgage repayment on the median price tag home was $2,244 at the existing 5.13% mortgage rate, up 35% from $1,665 per year earlier, when mortgage rates were 2.86%. Thats down from the peak of $2,463 reached through the a month ending June 12.
- Pending home sales were down 17% year over year.
- New listings of virginia homes were down 14% from the year earlier, the biggest decline since June 2020.
- Active listings (the amount of homes listed on the market at any point through the period) fell 0.2% from the last four-week period, the initial decline because the a month ending Jan. 30, 2022. On a year-over-year basis, they rose 4%the smallest increase because the a month ending July 3, 2022.
- 37% of homes that went under contract had a recognized offer within the initial two weeks available, little changed from the last four-week period but down from 44% per year earlier.
- 25% of homes that went under contract had a recognized offer within seven days of hitting the marketplace, little changed from the last four-week period but down from 31% per year earlier.
- Homes that sold were available for a median of 23 days, up from 21 days per year earlier and the record low of 17 days occur May and early June.
- 41% of homes sold above list price, down from 51% per year earlier.
- Normally, 7.7% of virginia homes every week had a cost drop, an archive high but unchanged from the last four-week period.
- The common sale-to-list price ratio, which measures how close homes are available with their asking prices, declined to 100.3% from 101.6% per year earlier. Quite simply, the common home sold for 0.3% above its price tag.
To see the entire report, including charts and methodology, please visit:
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Released August 18, 2022