Inventory improves as market shows signs of easing, Redfin reports
After more than a year of tight inventory and soaring prices, the housing market is showing signs of easing for buyers, with new listings of homes rising 13% year-over-year in February.
This marks the biggest annual increase in nearly three years, according to a new Redfin report. Inventory is slowly improving, with active listings remaining flat compared to last year – the first time in nine months that the total number of available homes hasn’t decreased.
While buyers now have slightly more options, housing costs remain historically high. The typical mortgage payment is $2,671, just $47 below last October’s record level. These high costs have contributed to an 8% decline in pending sales (the biggest drop in five months) and a fourth consecutive week of declining mortgage applications.
Despite these challenges, more buyers are re-entering the market, drawn by the increased number of homes. Redfin’s Homebuyer Demand Index, which tracks requests for tours and agent services, is up 10% from a month ago, reaching its highest level since last September.
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“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%.”
The report suggests that pending sales could improve in the coming months if interest rates stabilize and new listings continue to increase.
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