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The median U.S. home sale price hit a record high in May as demand continued to outpace supply, with the number of homes for sale roughly 25% below pre-pandemic levels

Home sales fell 1.7% month over month in May on a seasonally adjusted basis and dropped 2.9% from a year earlier, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. There have been just two months in the past decade with fewer home sales: October 2023, when mortgage rates jumped to a 23-year high, and May 2020, when the onset of the pandemic brought the housing market to a halt and home sales to a record low.

“Buyers today are facing many of the realities of a hot market even though few homes are changing hands,” said Redfin Senior Economist Elijah de la Campa. “Sales are sluggish because high homebuying costs are making both house hunters and prospective sellers skittish. And with so few homes for sale, buyers in some markets are getting into bidding wars, which is helping push home prices to record highs.”

Sales may pick up later this year if mortgage rates slowly tick down as expected.

May 2024 Highlights: United States

 

May 2024

Month-over-month change

Year-over-year change

Median sale price

$439,716

1.6%

5.1%

Homes sold, seasonally adjusted

407,959

-1.7%

-2.9%

New listings, seasonally adjusted

527,785

0.3%

8.8%

All homes for sale, seasonally adjusted (active listings)

1,634,420

0.4%

11.1%

Months of supply

2.3

-0.1

0.4

Median days on market

32

-3

0

Share of for-sale homes with a price drop

19.2%

2.4 ppts

6 ppts

Share of homes sold above final list price

35.0%

1.4 ppts

-2.4 ppts

Average sale-to-final-list-price ratio

99.9%

0.2 ppts

-0.1 ppts

Average 30-year fixed mortgage rate

7.06%

0.07 ppts

0.63 ppts

Note: Data is subject to revision

     

Home Prices Hit Another Record High in May, and Mortgage Rates Kept Climbing

The median home sale price rose 5.1% year over year in May to a record $439,716. The average 30-year-fixed mortgage rate hit 7.06%. That’s up from 6.99% one month earlier and 6.43% one year earlier, and is more than double the all-time low of 2.68% during the pandemic. Daily average mortgage rates did drop to their lowest level in about three months this week after the latest CPI report showed that inflation is continuing to cool.

Even though homes are selling for more than ever before, many sellers are still having to lower their list prices after putting their homes on the market—one silver lining for buyers.

Nearly One of Every Five Homes for Sale Faced a Price Cut

Nearly one in five (19.2%) homes for sale in May had a price cut, up from 13.2% a year earlier and just shy of the 21.7% record high set in October 2022.

Some sellers are reducing their prices because they listed their home for too much initially and it ended up sitting on the market. The typical home for sale in May spent 32 days on the market. While that’s comparable with a year earlier, it’s the highest level for any May since the start of the pandemic.

Price drops are particularly common in areas where housing supply has been rising quickly, like Florida and Texas. In these areas, individual home sellers have been facing strong competition from homebuilders.

The Housing Shortage Is Improving, But Remains Severe

New listings rose 0.3% month over month in May on a seasonally adjusted basis and climbed 8.8% from a year earlier. Still, they were roughly 20% below pre-pandemic (May 2019) levels. That’s largely because many homeowners don’t want to sell, as they feel “locked in” by the low mortgage rate they scored during the pandemic.

Active listings, or the total number of homes for sale, rose 0.4% month over month on a seasonally adjusted basis and jumped 11.1% from a year earlier—the largest annual gain since the start of 2023. Still, active listings were about 25% below pre-pandemic levels.

While new listings represent the number of homes that were listed for sale during a given month, active listings represent the total number of homes that were for sale during a given month. That means that the latter metric includes homes that aren’t selling. One reason active listings have risen so much is that in some areas, homes are lingering on the market and getting stale.

Active listings are also soaring along Florida’s southwest Gulf Coast. In North Port, they surged 51.1% year over year on an unadjusted basis—the largest increase in the nation. Next came Tampa (46%) and Cape Coral (45.1%). Those housing markets are cooling faster than anywhere else in the country amid a new-construction boom, intensifying natural disasters and soaring insurance costs, a separate Redfin report found.

Meanwhile, many of the markets that are holding up best and seeing price increases—like Rochester, NY—are relatively affordable and have near-record-low supply.

Metro-Level Highlights: May 2024

  • Prices: Median sale prices rose most from a year earlier in Anaheim, CA (17.6%) Cleveland (15.1%) and Nassau County, NY (14.2%). They fell most in Cape Coral, FL (-2.7%), Honolulu (-2.1%) and Austin, TX (-1.1%).
  • Price cuts: In Indianapolis, 48.1% of listings had a price drop—a higher share than any other metro Redfin analyzed. Next came Tampa, FL (45.2%) and Denver (44.8%). The lowest shares were in Newark, NJ (13.4%), Lake County, IL (15%) and Milwaukee (15.2%).
    Note: Three of the 10 metros with the highest shares of price drops are in Florida and three are in Texas.
  • New listings: New listings rose most in San Jose, CA (32.7%), Seattle (31.2%) and Denver (31.1%). They fell most in Atlanta (-7.7%), New Orleans (-4.4%) and Greensboro, NC (-4.3%).
  • Active listings: Active listings rose most in North Port, FL (51.1%), Tampa (46%) and Cape Coral (45.1%). They fell most in New Brunswick, NJ (-8.1%), Chicago (-7.3%) and Raleigh, NC (-5.5%).
  • Closed home sales: Home sales rose most in San Jose (16.6%), Minneapolis (11.7%) and San Francisco (10.5%). They fell most in Stockton, CA (-15.4%), Buffalo, NY (-15.3%) and San Antonio (-14.3%).
  • Sold above list price: In Rochester, NY, 77.1% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next came San Jose (76.1%) and Oakland, CA (68.4%). The shares were lowest in North Port (5.9%), West Palm Beach, FL (8.1%) and Cape Coral (8.6%).

To view the full report, including charts, please visit: https://www.redfin.com/news/home-sales-fall-to-near-record-low

Posted On Friday, 14 June 2024 05:48 Written by

 

The power of looking forward is often lost on those who just move from one day to the next, one week at a time, or just looking at results on a month-to-month basis. These people lose the perspective of the kind of long-range view that can maximize results. Many things must be done in the moment, but it really helps your mindset and your business if you spend a little bit of time each week being engaged in the process of looking forward.

As you have noticed, my emphasis on annual business planning in October so we can implement and be scheduled to hit the ground running in the new year with a full head of steam. Maybe you have read my article about the three distinct and critical 90-day windows of opportunity to focus and generate business while leaving time to vacation and unwind in the gaps in between? I spend a great deal of time trying to prepare my clients with not only the structure and processes to succeed; but also, the schedule of activities that get them motivated and focused on doing more business at a much higher level.

For some of you it may just feel like the middle of June, but it’s the time to organize for the 4th of July holiday week! Why “week” you may ask? Because the holiday falls on a Thursday, which means that people will check out on Tuesday or Wednesday, and most will skip work on Friday, while others may be shut down the entire week! Sounds simple, but what about those who need to close? Who is working? Can I get a closing agent? What if we need a VOE and the company is closed that week? Are you already on top of these issues? Could you win business now because you are? You could, if you were sharing that information with your people and your market!

Our business demands that we focus on immediate details. Our long-term success depends on looking forward and scheduling the outcome we desire!

Market moved well on the CPI numbers and some of the FED comments pulled us back a little. Keep an eye on initial and continuing claims this morning, along with the PPI numbers. Could help move the markets. If you have questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 17 June 2024 00:00 Written by

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.95 percent.

“Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,” said Sam Khater, Freddie Mac’s Chief Economist. “Top-line inflation numbers were flat but shelter inflation, which measures rent and homeownership costs, increased showing that housing affordability continues to be an ongoing impediment for buyers on the house hunt.”

News Facts

  • The 30-year FRM averaged 6.95 percent as of June 13, 2024, down from last week when it averaged 6.99 percent. A year ago at this time, the 30-year FRM averaged 6.69 percent.
  • The 15-year FRM averaged 6.17 percent, down from last week when it averaged 6.29 percent. A year ago at this time, the 15-year FRM averaged 6.10 percent.

The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website |

Posted On Thursday, 13 June 2024 12:41 Written by
Posted On Thursday, 13 June 2024 10:58

Daily average mortgage rates dropped to their lowest level in three months on Wednesday, after the May CPI report showed that inflation is continuing to cool. That could bring back some demand; for now, home sales are still declining.

The median U.S. home-sale price hit an all-time high of $394,000 during the four weeks ending June 9, up 4.4% year over year—the biggest increase in about three months. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

There are signs that home-price growth could ease soon. Asking prices have leveled off, and 6.5% of home sellers are cutting their asking price, on average, the highest share since November 2022. Prices are already declining in four U.S. metros: Austin, TX, Fort Worth, TX, San Antonio, TX and Portland, OR.

Meanwhile, the typical homebuyer’s monthly housing payment dipped to $2,829, which is $30 below April’s record high. Median housing payments have fallen slightly since April despite record sale prices because weekly average mortgage rates have declined to 6.99%.

Mortgage rates are likely to decline further over the summer, which would keep monthly housing costs from spiraling up again. Daily average mortgage rates dropped to their lowest level in three months on June 12 after the latest CPI report showed that inflation is continuing to cool. And although the Fed forecast just one interest-rate cut this year at its June 12 meeting, it’s possible the Fed wasn’t able to fully consider the fresh inflation data in time for the meeting; they may revise their projection at the next meeting. (It’s worth noting that daily rates have been volatile for the last several days; they soared after last Friday’s hot jobs report before dropping back down.)

“The latest inflation report is good for homebuyers because it has already sent mortgage rates down, though this week’s Fed meeting will temper mortgage-rate declines,” said Chen Zhao, Redfin’s economic research lead. “But on the other side of the coin, if lower mortgage rates bring back more demand than supply, that could erase the possibility that home-price growth softens, and push prices up even further. Lower rates and higher prices may ultimately cancel each other out when it comes to homebuyers’ monthly payments.”

For now, high costs are keeping some prospective homebuyers on the sidelines. Pending home sales are down 3.5% year over year, the biggest decline in three months, and Redfin’s Homebuyer Demand Index—a measure of requests for tours and other buying services from Redfin agents—is down 18%, sitting at its lowest level since February. But there is one encouraging sign for demand: Mortgage-purchase applications are up 9% week over week. On the selling side, new listings are up 7.8% year over year, but they’re below typical springtime levels, which is why home prices keep rising despite tepid demand.

For more on Redfin economists’ takes on the housing market, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

6.98% (June 12)

Up from 7.03% a week earlier, but down from a 5-month high of 7.52% 5 weeks earlier

Up from 6.94%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.99% (week ending June 6)

Down slightly from 7.03% a week earlier; down from a 5-month high of 7.22% a month earlier

Up from 6.71%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Increased 9% from a week earlier (as of week ending June 7)

Down 12%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Down 2% from a month earlier (as of week ending June 9)

Down 18%

Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents

Touring activity

 

Up 28% from the start of the year (as of June 9)

At this time last year, it was up 22% from the start of 2023

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Unchanged from a month earlier (as of June 10)

Down 16%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending June 9, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending June 9, 2024

Year-over-year change

Notes

Median sale price

$393,627

4.4%

All-time high; biggest increase in about 3 months (tied with increase during 4 weeks ending April 21)

Median asking price

$417,475

6%

 

Median monthly mortgage payment

$2,829 at a 6.99% mortgage rate

8.6%

$30 below all-time high set during the 4 weeks ending April 28

Pending sales

86,604

-3.5%

Biggest decline in 3 months

New listings

100,411

7.8%

 

Active listings

939,839

16.7%

 

Months of supply

3.2

+0.6 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

42.4%

Down from 48%

 

Median days on market

31

+3 days

 

Share of homes sold above list price

32.1%

Down from 35%

 

Share of homes with a price drop

6.5%

+2 pts.

Highest level since Nov. 2022

Average sale-to-list price ratio

99.6%

-0.3 pts.

 

Metro-level highlights: Four weeks ending June 9, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Anaheim, CA (16.8%)

Newark, NJ (16.4%)

New Brunswick, NJ (15.5%)

Nassau County, NY (14.6%)

San Jose, CA (13%)

Austin, TX (-3.5%)

Fort Worth, TX (-2.5%)

San Antonio (-1.1%)

Portland, OR (-0.9%)

Declined in 4 metros

Pending sales

San Jose, CA (12.2%)

Columbus, OH (5.8%)

Pittsburgh (5.4%)

Milwaukee (4%)

Seattle (3.6%)

Houston (-16.2%)

West Palm Beach, FL (-13.4%)

Fort Lauderdale, FL (-11.5%)

Atlanta (-10%)

Tampa, FL (-9.9%)

Increased in 13 metros

New listings

San Jose, CA (39.9%)

Phoenix (26.1%)

San Diego (23.2%)

Miami (20.9%)

Denver (17.7%)

Atlanta (-7.9%)

Chicago (-5.1%)

Newark, NJ (-3.2%)

Indianapolis (-2.8%)

Minneapolis (-2.1%)

Declined in 7 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-record-high-mortgage-rates-decline

Posted On Thursday, 13 June 2024 06:04 Written by
Posted On Wednesday, 12 June 2024 13:56
Posted On Wednesday, 12 June 2024 11:09

More homes are sitting on the market for at least 30 days without going under contract, as homebuying demand falters in the face of high housing costs

More than three in five (61.9%) homes that were on the market in May had been listed for at least 30 days without going under contract, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s up from 60% one year earlier and roughly 50% two years earlier.

The share of homes sitting on the market for at least one month has been increasing year over year since March, when growth in new listings accelerated but demand from buyers remained tepid, as it has been since mortgage rates started rising in 2022. More homes for sale paired with slow demand means that less-desirable listings are piling up, leaving some of them without a buyer.

This is according to an analysis of Redfin’s housing-market data, which goes back through 2012. The inventory data in Redfin’s report includes homes that were on the market for at least 30 days, or at least 60 days, without going under contract and were actively listed on the final day of the month.

Stubbornly high mortgage rates and record-high home prices have priced out many homebuyers, tempering demand even at a time of year when the housing market is typically warming up. The average 30-year fixed mortgage rate is 6.99%, more than double the pandemic-era low and just slightly below October 2023’s two-decade high of 7.8%. The median U.S. monthly housing payment is just about $30 shy of its record high.

Redfin agents report that move-in ready homes in desirable neighborhoods are still selling quickly, but listings that don’t fit that bill are starting to pile up in some parts of the country.

Two in five listings are sitting on the market for 60 days or more

Two in five (40.1%) homes that were on the market in May had been listed for at least two months without going under contract. That’s unchanged from a year earlier and up from 27.8% two years earlier.

The share of homes sitting on the market for at least 60 days was essentially flat year over year in both April and May. Before that, the metric had posted annual declines since last September. The share of homes sitting for at least 60 days is likely to start increasing next month so long as mortgage rates stay high, according to Redfin economists.

Metro-level highlights: Unsold inventory, May 2024

The share of inventory sitting on the market for 30-plus days is growing fastest in Dallas. Just over 60% of Dallas listings that were on the market in May had been listed for at least 30 days, up from 53% a year earlier. Next come three Florida metros: Fort Lauderdale (75.5%, up from 68.2%), Tampa (68.7%, up from 61.9%) and Jacksonville (69.2%, up from 62.9%). Inventory is growing stale fast in Texas and Florida largely because those states are building far more homes than anywhere else in the country, contributing to rising supply, and because some homebuyers are nervous about the increasing prevalence of natural disasters.

On the other end of the spectrum, the share of homes sitting on the market for at least 30 days has declined most in Seattle (41.2%, down from 50.5%), Las Vegas (55.9%, down from 63.9%) and San Jose, CA (34.4%, down from 42.2%).

To view the full report, including charts and additional metro-level data, please visit: https://www.redfin.com/news/stale-inventory-may-2024

Posted On Wednesday, 12 June 2024 06:46 Written by
Posted On Thursday, 13 June 2024 00:00 Written by
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