New listings fell 19% in the four weeks ended May 7, while pending home sales fell 16%, according to a new report from Redfin.
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A new report from Redfin says significantly limited home inventory and high mortgage rates are delaying the spring home buying season.
New listings fell 19% in the four weeks ending May 7, in what is typically the busiest season for homebuying. The report states: Pending home sales were down 16% from the same period last year, suggesting that homebuyers and sellers are still being held back by mortgage rates above 6%.
But with fewer homes for sale, the homebuying climate feels hotter than it actually is, and buyers willing to pay more for their mortgages are in the minority on the market. face fierce competition for housing in
Nearly half of the homes sold in the four weeks ending May 7 sold within a few weeks. The percentage increased last month, which is unusual for a time when homebuying activity is settling from its spring highs.
The report noted that mortgage purchase applications were up 5% from the same period last year.
another Report from Zillow released this week A drought of new listings has pushed prices higher, proclaiming a resurgence of a seller’s market.
Taylor Marr | Redfin
“This spring’s housing market has been hot, cold and less active than usual due to fewer listings, but it’s also fast and competitive,” Taylor Ma, deputy chief economist at Redfin, said in a statement. “The good news is that there are buyers trying to find seats for the game of chairs. The bad news is that there are not enough chairs.
“Many potential home sales are on hold until mortgage rates drop to levels where current owners are willing to trade in 3% interest. It’s still above target, even though it’s been steadily declining from its all-time high, so that’s unlikely to happen any time soon.”
Housing conditions across the country are determined by low inventory, which varies from market to market. Austin Redfin’s agent Gabriel Recio said in his report that demand is picking up and there is enough inventory to keep the competition going.
“We’ve seen an influx of homebuyers into this market in the last month,” Ratio said. “One of the reasons the economy is picking up is that people are getting tired of waiting for mortgage rates to go down and they feel it’s a good time to buy a home without much competition. Many of today’s buyers are immigrants from other states and some are investors.”
The Fed hiked rates for the 10th time at its most recent meeting as it battled inflation, but recent bank failures and a potential debt ceiling conflict could mean the central bank is ending rate hikes for now. is sending a signal.
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