More Homes, Fewer Buyers: The U.S. Housing Market Is Starting to Stabilize

The lopsided housing market in the U.S. is starting to right itself, albeit slowly, according to a report Friday from Redfin. 

New listings for homes rose 4% in the four weeks ending July 4, compared to the same time last year, the data found. They were also up 3% from the same four weeks in 2019, marking the first time new listings exceeded the 2019 levels since the beginning of the year. 

At the same time, pending home sales had their smallest year-over-year jump —17%—in close to a year, the data showed. Pending sales were also down 6% compared to the four-week period ending May 30. 

“Many buyers have backed away from the housing market and are waiting until more and better homes are listed,” Daryl Fairweather, Redfin’s chief economist, said in the report. “Buyers don’t have the same sense of urgency that they did at the beginning of the year.”

That’s because mortgage rates have dropped to below 3%, with no immediate signs of rising, and asking prices are starting to stabilize, she added. 

“With more new listings starting to come on the market, buyers who threw in the towel may want to look again because the market is tilting more in their favor,” Ms. Fairweather continued. 

But make no mistake, for now it’s still a seller’s market. 

The median home price reached yet another record high, hitting $364,430 for the four weeks ending July 4, a year over year increase of 22%, according to the report. Asking prices rose 12%, compared to the same four weeks in 2020. 

The median home spent 15 days on the market for the four-week period, down from 39 days at the same time last year, Redfin found. That number has been flat for the past month. 

In addition, 55% of homes sold for above their asking price, the data showed. That’s a year-over-year increase of 27%, the highest jump since Redfin began tracking the data in 2012. 

Article Source: Mansion Global