Redfin reports declining demand as mortgage rates stabilize at around 7%.

Some measures of homebuying demand stabilized in the last week of October.

Seattle, November 4, 2022–(business wire)–(NASDAQ: RDFN) — One-third fewer homes were signed in October than last year, the biggest drop since at least 2015, according to new data. report From Redfin (redfin.com), a technology-enabled real estate broker. Several pandemic-his boomtowns, such as Las Vegas, Miami and Phoenix, have recorded declines of around 50%. Nationwide, a record share of home sellers slashed prices last month.

But as mortgage rates dipped below 7% in the final week of October, several key indicators of homebuying demand stabilized after weeks of decline: A Google search for ‘homes for sale’. , Redfin’s Home Buyer Demand Index, Mortgage Purchase Applications, and Pending Sales.

“This week the Fed has shed light on the end of the tunnel that has slowed the pace of rate hikes, but the exit of the tunnel could be even more terrifying than expected,” said Taylor Ma, deputy chief economist at Redfin. rice field. “Although there is some glimmer of hope in the data that mortgage rates have flattened out this week and buyers are stuck in the market, there is still a lot of depth in the market as it grapples with the pain of rising mortgage rates. Loan rates could take even longer: As Powell said Wednesday, record rate hikes would have been like a bucket of water if the housing market had been overheating last year. It may take some time until the smoke clears to see what the situation will be next year.

Redfin agents in the Midwest and Mountains are taking advantage of the opportunity for first-time buyers and other budget-constrained buyers to return to the market in recent weeks to select features for their homes, and take the time to We are reporting that we have confirmed that We provide the right home at the right price, perform a thorough inspection, present the requirements below, and negotiate concessions from the seller.

Is this a temporary halt to the market’s cooling trend as buyers waited to bid when mortgage rates stabilized, or did it start a broader plateau in market activity? It is too early to judge Buyers adjust their budgets and expectations for mortgage rates around her 7%.

Leading indicators of home buying activity:

  • The 30-year mortgage rate fell to 6.95% in the week ending November 3rd.

  • Fewer people are searching ‘home for sale’ on Google than this time of year in 2021. Searches for the week ending October 29 were down 32% year-over-year, but were up 1 percentage point from the previous week.

  • The seasonally adjusted Redfin Homebuyer Demand Index rose 0.5% over the past week and fell 33% year-on-year.

  • Tour activity fell 30% year-to-date as of October 30, compared to a 2% increase during the same period last year, according to home tour technology company ShowingTime. The gap between 2022 and his 2021 touring activity has narrowed by 3 percentage points over the past week.

  • Home loan applications for the week ending Oct. 28 fell 1% week-over-week on a seasonally adjusted basis, the smallest week-over-week decline in five weeks. Purchase requests were down 41% year-over-year.

Key housing market takeaways for over 400 metropolitan areas in the US:

  • Unless otherwise stated, this data covers the four weeks ending October 30th. Redfin’s weekly housing market data goes back to 2015.

  • The median home sale price was $360,861, up 4% from the previous year. This growth rate is down 13 percentage points from the peak annual growth rate in March.

  • Home sales prices declined year-over-year in four major US metropolitan areas. Prices were down 5% year over year in San Francisco, 2% in Oakland, CA, 2% in San Jose, CA and less than 1% in Lake County, IL. .

  • Among the metropolitan areas with more than 500 pending sales during the period, the biggest year-on-year declines in pending sales were in Las Vegas (-53%), Miami (-48%), and Seattle (-48%). %) and Phoenix (-47%). %), Portland, Oregon (-46%), and Riverside, CA (-45%).

  • The median asking price for newly listed homes was $373,725, up 7% from a year ago, but down 7% from a record high of $399,975 in May.

  • Monthly mortgage payments for an average asking price home are $2,524 at the current 6.95% mortgage rate, up 48% from $1,703 a year ago when the mortgage rate was 3.09%, up 48% in the recent four weeks. It has moved up from its low of $2,203. Period until August 14th.

  • Pending home sales fell 33% year-on-year, the biggest drop since at least January 2015. First increase in 2 months.

  • New home listings for sale decreased 18% year over year. This wasn’t as extreme as his 20% drop in the four weeks to October 23rd.

  • Active listings (the number of homes offered for sale at any point during the period) were up 7.4% year-on-year. This was up from 7.0% in the previous quarter and the biggest increase in six weeks.

  • Months of supply (a measure of the balance of supply and demand calculated by dividing the number of active listings by closed sales) increased to 3.3 months, the highest level since June 2020.

  • 34% of contracted homes accepted the offer within the first two weeks on the market. This is little changed from the previous four weeks, but down from 40% the year before.

  • 23% of contracted homes received an accepted offer within a week of being on the market. This is little changed from his previous four-week period, but down from 28% the year before.

  • The median length of time homes were sold was 35 days, up one week from 27 days the previous year and up 18 days from the all-time low of 17 days set in May and early June.

  • 28% of homes sold above list price, down from 43% a year ago and the lowest level since July 2020.

  • On average, prices fell at a record 7.9% of homes sold each week, up from 3.7% a year earlier.

  • The average sales price ratio, which indicates how close homes are to final asking price, dropped to 98.7% from 100.5% a year earlier. This was the lowest level since July 2020.

To view the full report including graphs, please visit: https://www.redfin.com/news/housing-market-update-demand-declines-ease/

About Redfin

Redfin (www.redfin.com) is a technology-enabled real estate company. We help people find a place to live with brokerage, instant home buying (iBuying), rentals, loans, title insurance, and renovation services. We sell homes for more money and cut our fees in half. We also operate the No. 1 real estate brokerage site in Japan. Homebuyers get their first look at a home with an on-demand tour, and our financing and title services help you close the deal faster. Customers selling their homes can get instant cash offers from Redfin or have their homes repaired by a renovation crew for the highest possible price. Our rental business empowers millions of people across the country to find apartments and homes for rent.Since launching in 2006, our customer has saved him over $1 billion in commissions. I was. We serve over 100 markets in the United States and Canada and employ over 6,000 people.

For more information, or to contact your local Redfin Realtor, please visit: www.redfin.comFor housing market trends and data downloads, visit Redfin Data CenterTo be added to Redfin’s press release distribution list, please email press@redfin.com. To view the Redfin press center, click here.

View source version at businesswire.com: https://www.businesswire.com/news/home/20221104005485/en/

contact address

Redfin Journalist Services:
Kenneth Applewhite, 206-588-6863
press@redfin.com

Leave a Comment