The housing market and home purchase demand continue to cool as mortgage rates surpass 3% for the first time in 10 weeks, according to a new report of Red tuna, technology-based real estate brokerage.
The Redfin Home Purchase Demand Index – a measure of home purchase demand and requests for home visits and other home buying services from Redfin agents – has fallen below levels of 2020 for the first time this year (-1% year-over-year for the week ending June 20), and the Mortgage Bankers Association home buying index is down 11% since the end of the week March 24. As a result of lower sales, the active supply of homes for sale is up 5% from the 2021 low in mid-March. However, home prices continue to rise, homes are selling in fewer days than ever, and more homes than ever are selling above the list price. These home purchase demand indicators will take longer to reflect a slowdown since they are based on homes that were contracted a month or two ago.
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“Some buyers are suspending or abandoning their purchase plans because homes in their area have become too expensive,” said Redfin’s chief economist. Daryl Nice weather. “Even if there is no sign of falling prices, homebuyers may face a little less competition and have a few more home choices this summer than they did. earlier this year. All year long we have heard stories of owners reluctant to sell because they don’t want to face such a tough market as a buyer. As the housing market cools slightly, we may see more homeowners finally deciding to cash in and move out. And as the economy continues to reopen and employers clarify their work-from-home policies, more homeowners may decide a move is in order. “
Highlights of the housing market for over 400 metropolitan areas in the United States:
Unless otherwise indicated, this data covers the four-week period ending June 20. Redfin’s housing market data goes back to 2012.
Data based on homes put up for sale and / or sold during the period:
• The median selling price of homes increased 23% year over year to reach $ 361,750, a record.
• Asking prices for newly listed homes increased 13% from the same period a year ago to reach a median of $ 362,600, down 0.2% from $ 363,250 during the four week period ending June 6. Seasonally, asking prices have stayed higher and longer than they typically do at this point in late spring.
• Pending home sales increased 21% year over year. For the week ending June 20, pending sales were down 10% from the peak of 2021 in the week ending May 30.
• New listings of homes for sale increased 6% from the previous year and decreased 5% from the peak of 2021 during the four-week period ending 23 May.
• Active listings (the number of homes listed at any time during the period) fell 34% from 2020, but increased 5% from the 2021 low during the four-week period finishing March 14.
• 55% of homes under contract had an accepted offer within the first two weeks on the market, well above the 44% rate in the same period a year ago, but down 1.7 points as a percentage of the peak of the year, established during the four-week period ending March 28.
• 41% of homes under contract had an offer accepted within a week of going on the market, up from 32% in the same period a year earlier, but down 2.1 percentage points from peak of the year, established during the four-week ending March 28.
• Homes that sold were on the market for a median of 15 days, a new all-time low and down from 39 days a year earlier.
• A record 54% of homes sold above the list price, up from 26% a year earlier.
• The average sale-to-list price ratio, which measures how well homes are selling for their asking price, rose to 102.3%. In other words, the average home has sold 2.3% above its asking price. This measurement is 3.8 percentage points higher than a year earlier and an all-time high.
Other leading indicators of housing demand and buying activity:
• Mortgage purchase requests increased 1% week-over-week (seasonally adjusted) in the week ending June 18. For the week ending June 24, 30-year mortgage rates rose to 3.02%, the first time rates were above 3% in ten weeks.
• Home visits from June 20 were 30% above their level at the start of the year, up from a 48% increase at the same time last year according to home visiting technology company ShowTime.
• The seasonally adjusted Redfin buyer demand index fell below 2020 levels for the first time this year in the week ending June 20, and is down 18% from the high point of 2021, which was reached during the week ending March 28.
To view the full report, including charts and methodology, please visit: