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More sellers are listing their homes, but 7% mortgage rates and still-high home prices are pushing down sales

New listings of U.S. homes for sale rose 13% year over year during the four weeks ending February 25, the biggest increase in nearly three years, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Total inventory is also improving: Active listings are flat from a year ago, marking the first time in nine months the total number of homes for sale hasn’t declined.

That’s welcome news for homebuyers, who have been battling the dual challenges of low inventory and high mortgage rates for over a year. But while today’s buyers have a few more homes to choose from, they’re still facing historically high housing costs. The typical homebuyer’s mortgage payment is $2,671, just $47 shy of last October’s record high.

High costs pushed pending sales down 8%, the biggest decline in five months, and mortgage-purchase applications declined for the fourth straight week. But more house hunters are searching as more homes hit the market. Redfin’s Homebuyer Demand Index–a measure of requests for tours and other services from Redfin agents–is up 10% from a month ago to its highest level since last September. Pending sales could improve in the next few months if rates don’t increase further and new listings continue to rise.

“House hunters are out there, and competition picks up every time mortgage rates decline a bit,” said Brynn Rea, a Redfin Premier agent in Spokane, WA. “I’m telling buyers who can afford it to look now while they have more breathing room and less competition. They have a good chance of negotiating the price down or getting some concessions from the seller, which could make up for getting a 7% mortgage rate instead of 6%.”

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

7.15% (Feb. 28)

Up from 6.92% a month earlier

Up from 6.78%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.9% (week ending Feb. 22)

Up from 6.77% a week earlier

Up from 6.5%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Down 5% from a week earlier (as of week ending Feb. 23)

Down 12%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Up 8% from a week earlier; up 10% from a month earlier (as of week ending Feb. 25)

Down 9%

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

Google searches for “home for sale”

 

Up 7% from a month earlier (as of Feb. 24)

Down 8%

Google Trends

Touring activity

 

Up 12% from the start of the year (as of Feb. 25)

At this time last year, it was up 14% from the start of 2023

ShowingTime, a home touring technology company

Key housing-market data

U.S. highlights: Four weeks ending February 25, 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 February 25, 2024

Year-over-year change

Notes

Median sale price

$365,888

5.4%

Biggest increase since Oct. 2022 (with the exception of the 4 weeks ending Feb. 11, when there was a 5.5% increase)

Median asking price

$396,975

5.5%

 

Median monthly mortgage payment

$2,671 at a 6.9% mortgage rate

7.7%

Down less than $50 from all-time high set in October 2023

Pending sales

75,947

-7.7%

Biggest decline since Oct. 2022

New listings

79,354

12.9%

Biggest increase since June 2021

Active listings

763,254

Unchanged

First time active listings haven’t posted a YoY decline since June 2023

Months of supply

3.9 months

+0.2 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

37.9%

Up from 36%

 

Median days on market

48

-3 days

 

Share of homes sold above list price

23.6%

Up from 22%

 

Share of homes with a price drop

5.8%

+1.6 pts.

 

Average sale-to-list price ratio

98.4%

+0.4 pts.

 

Metro-level highlights: Four weeks ending February 25, 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

Newark, NJ (15.5%)

San Diego, CA (15.3%)

Montgomery County, PA (14.5%)

Pittsburgh (13.9%)

Anaheim, CA (13.5%)

San Antonio, TX (-5%)

Detroit (-0.4%)

Declined in 2 metros

Pending sales

Austin, TX (5.7%)

Milwaukee (3.7%)

Minneapolis (2.6%)

Cleveland (1.2%)

Pittsburgh (0.6%)

Cincinnati (0.6%)

San Antonio, TX (-29.8%)

New Brunswick, NJ (-19.4%)

Warren, MI (-18.3%)

Atlanta (-16%)

Houston (-15.6%)

Increased in 6 metros

New listings

Dallas (35.5%)

Jacksonville, FL (34.3%)

Austin, TX (31.6%)

Fort Worth, TX (29.8%)

Miami (25.7%)

Atlanta (-5.8%)

Newark, NJ (-5.4%)

Milwaukee (-4.6%)

Providence, RI (-4.3%)

Chicago (-1.5%)

Warren, MI (-0.9%)

Declined in 6 metros

To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-update-new-listings-increase-pending-sales-decline/

Posted On Sunday, 03 March 2024 07:47 Written by

Meet Tim Holmes, creator of Nurkl Toys, who is on a mission to help kids stay creative! In his recent video, Tim showcases how sticks can be transformed into endless possibilities for kids to enjoy. Check out the video!

 

 

Posted On Friday, 01 March 2024 13:09 Written by
Posted On Friday, 01 March 2024 10:50
Posted On Friday, 01 March 2024 10:20
Posted On Friday, 01 March 2024 09:54

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.94 percent.

"Mortgage rates continued their ascent this week, reaching a two-month high and flirting with seven percent yet again,” said Sam Khater, Freddie Mac’s Chief Economist. “The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying. While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines.”

News Facts

  • The 30-year FRM averaged 6.94 percent as of February 29, 2024, up from last week when it averaged 6.90 percent. A year ago at this time, the 30-year FRM averaged 6.65 percent.
  • The 15-year FRM averaged 6.26 percent, down from last week when it averaged 6.29 percent. A year ago at this time, the 15-year FRM averaged 5.89 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 Friday, 01 March 2024 09:47 Written by
Posted On Thursday, 29 February 2024 13:37
Posted On Thursday, 29 February 2024 13:29
Posted On Thursday, 29 February 2024 13:13
Posted On Thursday, 29 February 2024 12:59

Lending Tree's latest survey found that nearly two-thirds of homebuyers or sellers who asked their real estate agent for a lower commission fee were successful. Here's what else they found.

  • While just 31% of homebuyers or sellers have attempted to negotiate real estate agent commission fees when buying or selling, 64% of those who asked successfully reduced theirs. Additionally, 36% say they weren’t aware negotiating was an option but would have tried if they were. Overall, 84% of Americans believe real estate agents should be flexible with their commission.
  • Among homebuyers or sellers, 48% admit they don’t know what percent commission their agent received in their last transaction. 44% of those who do know say their agent received between 3.00% to 4.99% in their last transaction, while 30% say it was 5.00% or higher. 
  • 64% of Americans believe a real estate agent is at least somewhat necessary when buying or selling. However, 44% say they would attempt a real estate transaction without an agent. When asked if they think online tools and services have made agents less necessary in transactions, 64% agreed.
  • 11% of Americans said the buyer should be responsible for the entire commission, and 20% said the seller. Over a third (35%) of homebuyers or sellers say they’ve been asked to pay the other party’s real estate agent fees in a transaction — more commonly the buyer than the seller.

You can check out our full report here: https://www.lendingtree.com/home/mortgage/real-estate-survey/

LendingTree's Senior Economist and report author, Jacob Channel, had this to say. 

"Remember, real estate agent fees aren’t necessarily set in stone. While most home buyers and sellers don’t attempt to negotiate fees, a majority of those who do have gotten their fees lowered. This goes to show how important it is to advocate for yourself during all stages of the homebuying/selling process. If you don’t ask for a better deal, you’re unlikely to get one."

Posted On Thursday, 29 February 2024 08:32 Written by
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