SEATTLE–(BUSINESS WIRE)–(NASDAQ: RDFN) — The typical home sold in the four weeks ended July 17 spent 19 days on the market, one day longer than a year earlier. That’s according to a new report from Redfin (redfin.com), the tech-enabled real estate agent.
This is the first time in two years that mean time to market has increased year over year. Pending home sales fell more than since May 2020, and the total number of homes for sale posted the largest increase since August 2019, although fewer homes came on the market than at this time last year. Home selling prices continued to fall, falling another 0.6% from the four-week period ended July 10.
“Buyers who were struggling to compete earlier this year can now take time to tour homes and maybe even wait and see if sellers drop the price,” said Redfin chief economist Daryl Fairweather. “Nevertheless, only a few houses are listed. So when your dream home hits the market, bargain hard now that you have the power. Value may go down in the short term, but if you plan to live there for five years or more after 10 years, you will almost certainly gain home equity over that horizon. Sellers, on the other hand, may want to go public sooner rather than later before prices fall further.”
Leading indicators for home purchases:
In the week ended July 21, 30-year mortgage rates rose to 5.54%. That was down from a 5.81% peak in 2022, but up from 3.11% at the start of the year.
Fewer people searched Google for “homes for sale” – searches in the week ended July 16 were down 23% from a year ago.
The seasonally adjusted Redfin Homebuyer Demand Index — a measure of requests for home inspections and other home buying services from Redfin agents — declined 17% year over year for the week ended July 17.
Touring activity as of July 10 was down 2% from the start of the year, compared with a 22% increase at the same time last year, according to home tour technology company ShowingTime.
Applications for mortgage purchases fell 19% year-on-year in the week ended July 15 to the lowest level since April 2020, while the seasonally adjusted index fell 7% week-on-week.
Major housing takeaways for over 400 U.S. metropolitan areas:
Unless otherwise stated, this includes data the four-week period ending July 17. Redfin’s weekly housing market data dates back to 2015.
The median home selling price rose 11% year over year to $389,200. This was down 1.7% from the peak during the four-week period ended June 19. A year ago, the median price increased by 0.9% over the same period. The annual growth rate was below the peak of 16% in March.
The median asking price for newly listed homes rose 14% year over year to $396,448, but was 2.8% below the all-time high set in the four weeks ended May 22. Last year, average prices over the same period were only 0.8% lower.
The monthly mortgage payment on the average asking price for a home reached $2,389 at a current mortgage rate of 5.54%, up 45% from $1,650 a year ago when mortgage rates were 2.78%. That’s a slight drop from the high of $2,486 set in the four weeks ended June 12.
Pending home sales fell 15% year over year, the biggest drop since May 2020.
New listings of homes for sale were down 3% year over year.
Active listings (the number of properties for sale at any point during the period) rose 3% year over year — the biggest increase since August 2019.
41% of signed homes had an accepted offer within the first two weeks on the market, up from 46% a year earlier.
28% of signed homes had an accepted offer within a week of launch, up from 33% a year earlier.
Homes sold were on the market for a median of 19 days, up from 18 days last year and down from a record low of 15 days in May and early June.
49% of homes sold above list price, up from 54% last year.
On average, 7.3% of homes for sale saw prices fall each week, a record high as far as data goes back to early 2015.
The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, fell to 101.4%. In other words, the average home sold for 1.4% above its asking price. This was down from 102.1% in the previous year.
For the full report including graphs and methods go to: https://www.redfin.com/news/housing-market-update-homes-take-longer-to-sell/
About Redfin
Redfin (www.redfin.com) is a technology-driven real estate company. We help people find housing with real estate brokerage, home buying (iBuying), rental, lending, home insurance and home improvement services. We sell houses for more money and charge half the fee. We also operate the country’s leading real estate agent website. Our home buying clients view homes first with on-demand tours, and our rental and ownership services help them close quickly. Clients selling a home can accept an instant cash offer from Redfin or have our home renovation team repair their home to sell for a top price. Our rental business enables millions of people across the country to find apartments and homes for rent. Since launching in 2006, we’ve saved our clients more than $1 billion in commissions. We serve more than 100 markets in the US and Canada and employ over 6,000 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn more about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release mailing list, email [email protected]. Click here to view Redfin’s press center.