Homebuyer demand is starting to stabilize as October home sales registered their biggest drop since 2015, according to new data. redfin report.
Areas across the country that saw strong growth during the pandemic, including Las Vegas, Miami and Phoenix, saw a 50% decline last month as a record number of sellers lowered home prices.
Redfin found some key indicators of stable homebuyer demand as mortgage rates fell just below 7% in the last week of October. This includes a decline in Google searches for “homes for sale,” the company’s homebuyer demand index, mortgage applications, and pending sales.
Redfin’s deputy chief economist Taylor Ma said this week there was a light at the end of the tunnel as the Federal Reserve slowed its pace of rate hikes.the exit of the tunnel Scarier than expected.”
“Although there is some glimmer of hope in the data that mortgage rates have flattened this week and buyers are stuck in the market, there is still a sliver of hope in the market coping with the pain of rising mortgage rates.” “Mortgage rate declines may take longer than many expected,” Ma said. If the housing market was overheating last year, as Fed Chairman Powell said Wednesday, then record interest rate gains would require a bucket of fire to keep the balance. It was like pouring water in. It may take some time until the smoke clears to see what happens next year.”
According to Redfin, distributors in the Midwest and Mountain West have begun to return to the market by taking advantage of being less rushed and more “selective” to buy first-time buyers and budget-constrained buyers. said there was an increase in activity from their decision.
Undecided home sales fell 33% from last year in the week ending November 3, marking the biggest decline since January 2015, but rose slightly from the previous week in the week ending October 30. and increased for the first time in two weeks. Moon.
Mortgage rates fell to 6.95% in the week ending 3 November. Meanwhile, mortgage applications he fell 1% in the week of Oct. 28, down just 1%. Purchase requests were also down, down 41% from last year.
Redfin saw fewer Google searches for “homes for sale” in the week ending Oct. 29, down 32% from last year but up 1 percentage point from the week before. The Homebuyer Demand Index, which measures requests for tours and other services, is down 33% from last year.
In the four weeks to Oct. 30, active listings increased by 7.4% from last year, up from 7.0% in the previous period, the largest increase in six weeks, while new listings fell by 185 from last year. .
The median asking price is up 7% from 2021 to $373,725, but down 7% from the May high of $399,975. Meanwhile, the median selling price increased 4% year over year to $360.861.
34% of contracted homes were offered within the first two weeks, little change from the previous four weeks, but down from 40% last year. 28% of homes sold above list price, down from 43% last year and the lowest since July 2020.
The report also noted that the monthly mortgage payment for the average asking price home is $2,524 at the current 6.95% mortgage rate. That’s up 48% from last year’s $1,703, when mortgage rates were 3.09%, but up from the August low of $2,203.