Housing Market Tilted in Buyers' Favor: Sellers Pulled Back as New Listings Slow Down

Strategic Insights -

As the US housing market continues to favor buyers, would-be sellers are increasingly hesitant to list their properties, with new listings showing the smallest increase in five months. According to a recent report by Redfin, new listings are up 2.5% from last year, but this growth is slowing down. On a local level, new listings are declining in 20 of the 50 most populous US metro areas, with the biggest drops seen in Tampa, FL, San Antonio, and Orlando, FL.

Key Takeaways:

  • The number of new listings has slowed down, with a 2.5% increase from last year, the smallest increase in five months.
  • In 20 of the 50 most populous US metro areas, new listings are actually declining, with the biggest drops in Tampa, FL (-15.2%), San Antonio (-14.4%), and Orlando, FL (-11.1%).
  • Despite the ongoing low supply of homes, some would-be sellers are pulling back, choosing to stay put or rent out their properties instead of listing them for sale.
  • Redfin's Homebuyer Demand Index, a measure of tours and other homebuying services, ticked up slightly this week, indicating a slight increase in early-stage homebuying demand.
  • The median sale price has reached an all-time high of $400,266, while the median asking price is at $422,250, both indicating a seller's market.
  • The median monthly mortgage payment is $2,820 at a 6.81% mortgage rate, down $42 from May's record high.
  • The share of homes sold above list price is down to 28.6%, and the average sale-to-list price ratio is 99.1%, both indicating a decrease in seller optimism.
  • Pending sales have declined by 2.3% year over year, the largest decline in three months.
  • The share of homes off the market in two weeks is down from 40% to 36.6%, and the median days on market is up to 36 days, both indicating a slowdown in home sales.

Statistics:

  • Median sale price: $400,266 (1.6% increase from last year, an all-time high)
  • Median asking price: $422,250 (4.9% increase)
  • Median monthly mortgage payment: $2,820 (4.5% decrease, at a 6.81% mortgage rate)
  • Pending sales: 85,537 (2.3% decline year over year)
  • New listings: 102,593 (2.5% increase from last year, the smallest increase in five months)
  • Active listings: 1,171,760 (14.3% increase, the smallest increase in 15 months)
  • Months of supply: 4.1 (up 0.7 points from last year, indicating a seller's market)

Sources:

  • Redfin (www.redfin.com)
  • Mortgage News Daily
  • Freddie Mac
  • Mortgage Bankers Association
  • ShowingTime
  • Google Trends