"Sellers are losing control of the housing market," says Redfin economist
The number of homes for sale fell 8% during the four weeks ending June 05. This is the smallest year-over-year decline since January 2020 and a reflection of a slump in homebuyer demand, according to online brokerage Redfin.
According to the Redfin Homebuyer Demand Index, tours, offers and other requests for help with homebuying were down 12% last week, indicating the eighth consecutive week of decline.
New listings fell 2% during the four-week period, while 21% of sellers dropped their list price, the second-highest share on record since 2015.
Pending home sales also dropped 8% year over year, matching the decrease seen in May 2020.
Moreover, homes that sold during the four-week period were on the market for a record-low median of 15 days, down from 18 days last year.
“Sellers are losing control of the housing market as homes that are overpriced and/or less desirable are increasingly having price reductions and taking longer to sell,” said Redfin deputy chief economist Taylor Marr.
Marr said that although demand is easing, homebuyers may soon jump back into the market once home price growth eases and interest rates stabilize.
“A strong labor market will continue to be a driving force for the bulk homebuying demand this year,” he said.
Redfin’s housing data for the four-week period revealed a 15% year over year increase in median home sale price to a record $401,372. The median asking price of newly listed homes, meanwhile, increased 17% year over year to $413,950.
Additionally, the monthly mortgage payment on the median asking price home increased to $2,428 at the current 5.23% mortgage rate, said Redfin. This is a 42% increase from the $1,710 reported last year, when mortgage rates averaged 2.96%.
