According to a new report from Redfin, the supply of homes is gradually increasing as the number of homes for sale begins to increase and pending sales continue to decline steadily and seasonally. In turn, prices will stop rising as quickly as they have been and an increasing number of homes for sale will experience price drops.
Pending home sales were up 9% year-over-year, the smallest increase since the four-week period ending June 28, 2020. Pending sales were down 11% per year. compared to their peak of 2021 during the four-week period ending May 30, compared to a decrease of 4% from the same period in 2019.
New listings of homes for sale increased 2% from the previous year. The number of homes listed is experiencing a typical seasonal decline, down 8% from the 2021 peak in the four-week period ending May 23, compared to a 12% drop in the same period in 2019.
Active listings (the number of homes listed at any time during the period) fell 29% from 2020 – the smallest drop since the four-week period ending Jan. 17 – and climbed by 10% from their 2021 low in the four-week period. ending March 7.
For the four-week period ending July 18, the median home selling price rose 20% year-on-year to $ 364,160 – a record – in more than 400 metropolitan areas across the United States.
Asking prices for newly listed homes rose 12% from the same period a year ago to a median of $ 360,975. That’s a far cry from the all-time high reached in the four-week period ending June 27, and asking prices have been virtually unchanged since late May.
Fifty-two percent of homes that contracted had an accepted offer within the first two weeks on the market, which was well above the 44% rate during the same period a year ago, but down 5 percentage points from the year’s high, set in the four-week period ending March 28.
Thirty-eight percent of homes that contracted had an offer accepted within a week of entering the market, which was up from 32% in the same period a year earlier, but in down 5.5 percentage points from the high point for the year, established during the four-week period ending March 28.
In addition, 55% of homes sold above the list price, up from 29% a year earlier. This measure is leveling off, having been 54% to 55% since the four-week period ending June 27. The share of homes for sale with price drops increased to 4.3%, continuing to exceed the 2020 level and approaching 2019 levels (4.7% at this time in 2019).
To view the full report, click here.