Category Archives: Real Estate News

More Than 3 in 5 Home Listings Are Now ‘Stale’ As Record-High Costs Dampen Demand

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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

Seattle, WA – June 12, 2024 (BUSINESS WIRE) (NASDAQ: RDFN) 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

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country’s #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we’ve saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email press@redfin.com. To view Redfin’s press center, click here.

Contacts

Redfin Journalist Services:
Angela Cherry

U.S. Home Prices Hit Another Record High, But Mortgage Rates Are Starting to Decline – Which Could Give Buyers Relief

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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.

Seattle, WA – June 13, 2024 (BUSINESS WIRE) (NASDAQ: RDFN) 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 changeYear-over-year changeSource
Daily average 30-year fixed mortgage rate6.98% (June 12)Up from 7.03% a week earlier, but down from a 5-month high of 7.52% 5 weeks earlierUp from 6.94%Mortgage News Daily
Weekly average 30-year fixed mortgage rate6.99% (week ending June 6)Down slightly from 7.03% a week earlier; down from a 5-month high of 7.22% a month earlierUp 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 2023ShowingTime, 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, 2024Redfin’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, 2024Year-over-year changeNotes
Median sale price$393,6274.4%All-time high; biggest increase in about 3 months (tied with increase during 4 weeks ending April 21)
Median asking price$417,4756% 
Median monthly mortgage payment$2,829 at a 6.99% mortgage rate8.6%$30 below all-time high set during the 4 weeks ending April 28
Pending sales86,604-3.5%Biggest decline in 3 months
New listings100,4117.8% 
Active listings939,83916.7% 
Months of supply3.2+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 weeks42.4%Down from 48% 
Median days on market31+3 days 
Share of homes sold above list price32.1%Down from 35% 
Share of homes with a price drop6.5%+2 pts.Highest level since Nov. 2022
Average sale-to-list price ratio99.6%-0.3 pts. 
Metro-level highlights: Four weeks ending June 9, 2024Redfin’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 increasesMetros with biggest year-over-year decreasesNotes
Median sale priceAnaheim, 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 salesSan 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 listingsSan 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

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country’s #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we’ve saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email press@redfin.com. To view Redfin’s press center, click here.

Contacts

Redfin Journalist Services:
Kenneth Applewhaite
press@redfin.com

Homeowners List While Buyers Hang Back, Pushing Inventory Higher

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Home value growth eases along with competition – price relief may be on the horizon

  • Homeowners are breaking free from rate lock — new listings rose nearly 13% since last year.
  • Inventory is accumulating, rising 22% over last year and reducing the pandemic-era deficit.
  • Home value appreciation slowed in May, and forecast points to prices easing over the next year.

Seattle, WA – June 12, 2024 (PRNewswire) Home sellers are returning to the market, but they’re finding buyers hesitating, according to the latest Zillow® market report.1 New listings of houses outpaced sales in May, allowing buyer competition and price growth to cool — and further price relief is in the forecast.

“Rate lock’s hold seems to be loosening — homeowners who may have put off listing their homes are done waiting. But just as more choices sprang up for sale, buyers turned on cruise control,” said Orphe Divounguy, Zillow senior economist. “Inflation has hit younger households hardest, and stubbornly high rates have pushed a mortgage out of reach for many first-time buyers. That has cooled competition for houses. If these trends hold, we’re likely to see price growth flatten or tick down over the next year.”

Inventory infusion
New listings from sellers took a larger-than-average step up, rising 8% from April to May, and now stands 13% above last year’s extremely low level. The effects of “rate lock” — when owners hold onto their existing homes and low-rate mortgages — are weakening over time. A Zillow survey of recent sellers found a large majority (about 80%) were influenced by life events, such as getting married or having a child, and not necessarily by optimal financial conditions. 

But buyers aren’t matching sellers’ enthusiasm; sales in May were 6% lower than last year.2 This helped partially restock the housing shelves, with the number of homes on the market rising 22% compared to last year’s near record-low level. Inventory is still 34% below pre-pandemic norms, but that’s the smallest deficit in more than three years. 

New listings rose the most annually on the West Coast and coastal South, in San Diego, Seattle, Charlotte, Raleigh and the San Francisco Bay Area. Compared to last year, total inventory accumulated the most in major Florida markets, where strong new construction has helped refill the coffers. Buyers saw more listings month over month in every major market except Miami. 

Competition and appreciation ease
As a result, competition among buyers eased in May, and home price appreciation cooled with it. Growth in typical home values slowed from 4.4% year over year in April to 3.9% in May — still a healthy, normal rate — while monthly appreciation ticked down from 1.2% in April to 0.8% in May. Home values are still up significantly — more than 45% — since before the pandemic. 

Prices have fallen year over year in New Orleans, Austin and San Antonio, while appreciation is strongest in the Northeast and coastal California.

Renters struggling to save up for a down payment may get a slight reprieve in the coming year. Zillow forecasts home values will end 2024 up 0.4% on the year, and tick down 1.4% through May 2025. 

What it means for buyers and sellers
Zillow’s market heat index shows the nation is becoming a bit friendlier for buyers and is headed toward “neutral” territory, but sellers still hold a slight advantage. Buffalo, Hartford and San Jose are the top markets for sellers among the 50 largest metro areas. New Orleans, Miami, Jacksonville and Memphis are all tilted toward buyers, giving those in the market better leverage in negotiations.  

Nationwide, nearly one-quarter of all homes for sale received a price cut in May, the highest share in the past six years for this time of year. There’s a good chance that buyers can purchase a lingering property for less than list price. This environment makes experienced agents all the more valuable for both buyers and sellers, to find and negotiate deals for buyers, and to price and market properties correctly for sellers.  

Size
rank		Metropolitan
Area		May Zillow Home
Value Index
(ZHVI) (Raw)		ZHVI Change, 
Year over Year
(YoY)		ZHVI Change 
Since Before the
Pandemic		Market
Favors**		Share of
Listings with a
Price Cut		Inventory
Change, YoY		New Listings
Change, YoY
0United States$360,3103.9 %45.3 %Sellers23.9 %22.1 %12.6 %
1New York, NY$658,6037.1 %31.6 %Strong sellers13.8 %-4.6 %7.3 %
2Los Angeles, CA$965,5068.9 %42.8 %Strong sellers18.1 %21.1 %21.3 %
3Chicago, IL$321,7337.0 %35.7 %Strong sellers21.1 %3.0 %6.6 %
4Dallas, TX$379,2521.1 %46.9 %Sellers32.0 %28.9 %12.5 %
5Houston, TX$309,8541.6 %38.6 %Neutral28.3 %25.8 %11.6 %
6Washington, DC$569,6024.7 %30.7 %Strong sellers19.7 %11.3 %16.7 %
7Philadelphia, PA$362,1786.7 %43.8 %Sellers20.6 %5.8 %12.2 %
8Miami, FL$490,5116.6 %62.0 %Buyers24.5 %43.5 %10.8 %
9Atlanta, GA$386,7984.0 %56.3 %Neutral28.0 %37.5 %23.4 %
10Boston, MA$701,7408.3 %42.5 %Strong sellers16.9 %9.7 %15.6 %
11Phoenix, AZ$461,3904.2 %53.0 %Sellers35.2 %13.6 %26.6 %
12San Francisco, CA$1,188,8685.4 %25.5 %Strong sellers18.6 %27.1 %29.0 %
13Riverside, CA$585,9996.5 %52.1 %Sellers22.9 %23.7 %16.7 %
14Detroit, MI$254,0986.3 %40.4 %Sellers18.1 %6.2 %7.8 %
15Seattle, WA$754,3326.4 %44.8 %Strong sellers22.8 %27.1 %31.4 %
16Minneapolis, MN$376,4611.3 %27.4 %Strong sellers21.7 %22.7 %15.4 %
17San Diego, CA$962,78611.1 %56.8 %Sellers22.9 %44.4 %32.5 %
18Tampa, FL$381,4142.8 %61.8 %Buyers36.2 %60.6 %24.7 %
19Denver, CO$593,7321.9 %36.1 %Sellers32.9 %32.2 %24.5 %
20Baltimore, MD$387,4553.8 %31.3 %Sellers21.9 %14.7 %16.3 %
21St. Louis, MO$253,1434.5 %40.2 %Strong sellers19.5 %12.8 %5.8 %
22Orlando, FL$397,8593.3 %54.6 %Neutral30.0 %49.9 %20.7 %
23Charlotte, NC$386,1815.1 %59.1 %Neutral24.9 %27.3 %30.4 %
24San Antonio, TX$288,333-2.2 %34.7 %Neutral32.5 %29.3 %3.9 %
25Portland, OR$554,4651.6 %32.3 %Strong sellers25.8 %23.0 %14.2 %
26Sacramento, CA$586,9974.3 %34.5 %Strong sellers25.0 %19.8 %21.4 %
27Pittsburgh, PA$217,9686.1 %33.3 %Sellers23.1 %5.6 %13.0 %
28Cincinnati, OH$287,7545.2 %47.5 %Strong sellers22.0 %16.1 %12.1 %
29Austin, TX$463,202-4.1 %42.4 %Neutral30.7 %14.7 %14.6 %
30Las Vegas, NV$429,3697.1 %44.4 %Sellers23.3 %3.5 %23.1 %
31Kansas City, MO$306,0023.9 %45.8 %Strong sellers23.3 %27.8 %15.5 %
32Columbus, OH$314,9995.5 %49.7 %Strong sellers24.3 %25.9 %21.8 %
33Indianapolis, IN$281,9913.5 %50.7 %Sellers27.9 %21.2 %12.2 %
34Cleveland, OH$230,9537.5 %46.3 %Strong sellers18.7 %0.4 %7.1 %
35San Jose, CA$1,644,20212.7 %41.7 %Strong sellers14.5 %21.0 %28.5 %
36Nashville, TN$445,5522.1 %48.7 %Neutral32.8 %17.5 %13.5 %
37Virginia Beach, VA$351,4015.5 %41.0 %Sellers19.5 %17.1 %10.1 %
38Providence, RI$483,3138.2 %51.6 %Strong sellers15.4 %9.0 %11.0 %
39Jacksonville, FL$360,5471.4 %52.3 %Buyers32.7 %45.6 %16.2 %
40Milwaukee, WI$348,4356.5 %42.3 %Strong sellers11.4 %12.8 %17.1 %
41Oklahoma City, OK$235,3072.4 %42.9 %Neutral27.2 %23.1 %12.6 %
42Raleigh, NC$448,8583.0 %53.4 %Sellers29.2 %35.3 %29.1 %
43Memphis, TN$242,3001.8 %46.6 %Buyers27.1 %24.2 %5.1 %
44Richmond, VA$372,3535.0 %46.9 %Strong sellers20.7 %15.9 %12.6 %
45Louisville, KY$258,5223.7 %37.0 %Sellers23.9 %27.7 %20.1 %
46New Orleans, LA$241,191-5.9 %5.0 %Buyers27.0 %22.3 %5.8 %
47Salt Lake City, UT$548,5302.7 %46.3 %Sellers30.1 %19.4 %14.2 %
48Hartford, CT$363,76311.6 %56.3 %Strong sellers12.0 %15.9 %16.2 %
49Buffalo, NY$264,1117.5 %51.4 %Strong sellers14.5 %1.8 %2.6 %
50Birmingham, AL$254,4840.0 %37.6 %Sellers24.1 %22.0 %12.0 %
*Table ordered by market size 
**Based on Zillow Market Heat Index
1The Zillow® Real Estate Market Report is a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Research. For more information, visit www.zillow.com/research.
2Tracked by Zillow’s Sales Count NowCast.

About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences. 

Zillow Group’s affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®. 

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.

SOURCE Zillow