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Subjects: Product/Service, Economic News/Analysis

Redfin Reports The Typical U.S. Home Is Selling For Just $4,000 Less Than Last Year's All-Time High

(NASDAQ: RDFN) ? The typical U.S. home is selling for roughly $383,000, only about $4,000 less (-1%) than the all-time high set last June, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That's the smallest year-over-year drop in nearly four months. Additionally, this is just the second time since last August the sale-to-list price ratio has hit 100%; in other words, the average home is now selling for its asking price.

A lack of homes for sale is keeping prices afloat. New listings fell 27% from a year earlier during the four weeks ending June 25, the biggest drop since the start of the pandemic. That has contributed to the total number of homes for sale declining 11%, the first double-digit drop in over a year. Inventory is falling because of high mortgage rates, with many homeowners staying put to hang onto their comparatively low rates. Although the average 30-year mortgage rate has inched down in recent weeks, it's still near 7%, more than double 2021's record-low levels.

High rates are also deterring homebuyers, but they still outnumber home sellers. Pending home sales are down 15%, significantly smaller than the drop in new listings. That means buyers are snapping up inventory faster than it's being listed, which is keeping home prices elevated.

"The market isn't nearly as fast as it was 18 months ago, when homes were flying off the market for well over asking price, and it's not as slow as it was six or seven months ago, when mortgage rates first shot up," said Oakland, CA Redfin Premier agent Andrea Chopp. "Buyers should keep in mind that desirable homes are getting multiple offers and selling above asking price. And sellers should know that their home may not attract as much competition as their neighbor's home did two years ago, but it will sell if they price it fairly and put effort into marketing. Things like making small repairs and staging are important again."

Leading indicators of homebuying activity:

The daily average 30-year fixed mortgage rate was 6.91% on June 28, down from a half-year high of 7.14% a month earlier. For the week ending June 22, the average 30-year fixed mortgage rate was 6.67%, down slightly from the eight-month high of 6.79% hit at the beginning of the month.

Mortgage-purchase applications during the week ending June 23 rose 3% from a week earlier, seasonally adjusted. Purchase applications were down 21% from a year earlier.

The seasonally adjusted Redfin Homebuyer Demand Index?a measure of requests for home tours and other homebuying services from Redfin agents?hit its second-highest level since May 2022 during the week ending June 25. It was up 10% from a year earlier, the fifth consecutive annual increase. Demand was dropping at this time in 2022 as mortgage rates rose.

Google searches for "homes for sale" were up 5% from a month earlier during the week ending June 24, and down about 9% from a year earlier.

Touring activity as of June 21 was up 9% from the start of the year, compared with a 6% decrease at the same time last year, according to home tour technology company ShowingTime. Tours increased slowly during this time last year as mortgage rates shot up.

Key housing market takeaways for 400+ U.S. metro areas:

Unless otherwise noted, this data covers the four-week period ending June 25. Redfin's weekly housing market data goes back through 2015. For bullets that include metro-level breakdowns, Redfin analyzed the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-price-declines-shrinking

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, 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 in certain markets can 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. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 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 [email protected]. To view Redfin's press center, click here.

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