Source: car.org
Source: car.org
Fewer homes are pending sale than in any October since at least 2015. Six metro areas are now experiencing year-over-year price decline.
Seattle, WA – October 27, 2022 (BUSINESS WIRE) (NASDAQ: RDFN) U.S. pending home sales fell 35% year over year during the four weeks ending October 23, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That represents the largest annual decline and the fewest homes under contract in any October since at least 2015, when Redfin’s weekly housing market records began.
“Until this month, the pullback in the housing market could be described as something of a return to pre-pandemic conditions before sub-3% mortgage rates ignited a homebuying frenzy in 2020 and 2021,” said Redfin Deputy Chief Economist Taylor Marr. “But now both mortgage purchase applications and pending sales are below 2018 levels. A four-year setback is a serious correction. With mortgage rates still elevated, we are in for further sales declines, but those should eventually bring price relief to those who need to move this winter.”
“Every set of market conditions comes with its own tradeoffs,” said Sacramento Redfin real estate agent Michael Cendejas. “In the spring, buyers had to race and wager over homes that flew off the market within a week. Today, many homes are staying on the market for a month or two. While mortgage rates are much higher now, buyers have the opportunity to negotiate. We’ve gotten sellers to agree to a lower price and to provide a credit, which enables the buyer to buy down their mortgage rate to below 6%.”
Leading indicators of homebuying activity:
Key housing market takeaways for 400+ U.S. metro areas:
Unless otherwise noted, this data covers the four-week period ending October 23. Redfin’s weekly housing market data goes back through 2015.
To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-pending-home-sales-record-decline/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country’s #1 real-estate brokerage site. 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 take an instant cash offer from Redfin or have our renovations crew fix up their home 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 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006049/en/
Redfin Journalist Services:
Kenneth Applewhaite, 206-588-6863
press@redfin.com
Source: Redfin
Source: Statista
Sales of new single-family houses dropped for the fourth consecutive month in the United States, as potential home buyers face a perfect storm of unfavorable conditions. According to figures jointly released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, new home sales fell to a seasonally adjusted annual rate of 591,000 in April, the lowest it’s been since April 2020, when the Covid-19 pandemic left markets flooded with uncertainty.
As new home sales dropped 16.6 percent in April, house prices continued their relentless upward trend. The median price of new houses sold in April climbed to an all-time high of $450,600, up 20 percent from a year ago and more than 45 percent from April 2020. With the average sales price even higher than that at $570,300 and mortgage rates that have surged by more than two percentage points since the start of the year, many prospective buyers are effectively priced out of the market.
According to George Ratiu, Senior Economist and Manager of Economic Research at Realtor.com, today’s buyers face monthly mortgage payments that are $720 higher than a year ago, and that is on top of non-housing costs of living that have increased significantly amid the inflation surge in recent months.