Redfin Reports Homes Are Taking Longer to Sell
July 21 2022 - 1:26PM
Business Wire
Buyers can now take their time touring and
considering homes before making an offer. Still, selection remains
very limited despite supply being up, as few homes are being listed
and even fewer are selling.
(NASDAQ: RDFN) —The typical home sold during the four weeks
ending July 17 spent 19 days on the market, one day longer than
last year. That’s according to a new report from Redfin
(redfin.com), the technology-powered real estate brokerage.
This marks the first time in two years that the median time on
market has posted a year-over-year gain. Pending home sales fell
more than they have since May 2020, and the total number of homes
for sale posted its biggest increase since August 2019, despite
fewer homes hitting the market than this time last year. Home sale
prices continued to fall, down another 0.6% from the four-week
period ending July 10.
"Buyers, who earlier this year had to race to beat the
competition, can now take their time touring homes and perhaps even
wait to see if sellers drop the price," said Redfin chief economist
Daryl Fairweather. "Still, few homes are being listed, so if your
dream house hits the market, you should negotiate hard, now that
you have the power to. The value may fall in the near term, but if
you plan to live there for five or 10 years you will almost
certainly gain home equity over that horizon. Sellers, on the other
hand, may want to list sooner rather than later, before prices fall
more.”
Leading indicators of homebuying activity:
- For the week ending July 21, 30-year mortgage rates rose to
5.54%. This was down from a 2022 high of 5.81% but up from 3.11% at
the start of the year.
- Fewer people searched for “homes for sale” on Google—searches
during the week ending July 16 were down 23% from a year
earlier.
- The seasonally-adjusted Redfin Homebuyer Demand Index—a measure
of requests for home tours and other home-buying services from
Redfin agents—was down 17% year over year during the week ending
July 17.
- Touring activity as of July 10 was down 2% from the start of
the year, compared to a 22% increase at the same time last year,
according to home tour technology company ShowingTime.
- Mortgage purchase applications were down 19% from a year
earlier during the week ending July 15 to the lowest level since
April of 2020, while the seasonally-adjusted index was down 7% week
over week.
Key housing market takeaways for 400+ U.S. metro
areas:
Unless otherwise noted, this data covers the four-week period
ending July 17. Redfin’s weekly housing market data goes back
through 2015.
- The median home sale price was up 11% year over year to
$389,200. This was down 1.7% from the peak during the four-week
period ending June 19. A year ago the median price rose 0.9% during
the same period. The year-over-year growth rate was down from the
March peak of 16%.
- The median asking price of newly listed homes increased 14%
year over year to $396,448, but was down 2.8% from the all-time
high set during the four-week period ending May 22. Last year
during the same period median prices were down just 0.8%.
- The monthly mortgage payment on the median asking price home
hit $2,389 at the current 5.54% mortgage rate, up 45% from $1,650 a
year earlier, when mortgage rates were 2.78%. That’s down slightly
from the peak of $2,486 reached during the four weeks ending June
12.
- Pending home sales were down 15% year over year, the largest
decline since May 2020.
- New listings of homes for sale were down 3% from a year
earlier.
- Active listings (the number of homes listed for sale at any
point during the period) rose 3% year over year—the largest
increase since August 2019.
- 41% of homes that went under contract had an accepted offer
within the first two weeks on the market, down from 46% a year
earlier.
- 28% of homes that went under contract had an accepted offer
within one week of hitting the market, down from 33% a year
earlier.
- Homes that sold were on the market for a median of 19 days, up
from 18 days a year earlier and up from the record low of 15 days
set in May and early June.
- 49% of homes sold above list price, down from 54% a year
earlier.
- On average, 7.3% of homes for sale each week had a price drop,
a record high as far back as the data goes, through the beginning
of 2015.
- The average sale-to-list price ratio, which measures how close
homes are selling to their asking prices, declined to 101.4%. In
other words, the average home sold for 1.4% above its asking price.
This was down from 102.1% a year earlier.
To view the full report, including charts and methodology,
please visit:
https://www.redfin.com/news/housing-market-update-homes-take-longer-to-sell/
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220721005950/en/
Contact Redfin Redfin Journalist Services: Kenneth
Applewhaite, 206-588-6863 press@redfin.com
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