Today, I would like to discuss the latest news in the housing market about US home prices, housing inventory, house sales, and mortgage rates from the new Redfin report.
Here are the key housing market takeaways for 400+ US metro areas for four weeks ending May 8.
The median home sale price was up 17% year one year. It’s the biggest increase since August – a record of almost $400,000.
Housing Market Specifics
If we look at the graphic, we see the trajectory there has been increasing greatly over the past month.
The monthly mortgage payment on the median asking price home rose to a record high of $2,427 at the current 5.3% mortgage rate. This was up 44%” compared to one year ago, and also a new all-time record high.
Pending home sales were down 6% year over year, the largest decrease since June 2020. This is a leading indicator – if pending sales decrease, it’s a sign that home-buying demand is also falling.
Homes that sold were on the market for a record-low median of 15 days, down from 20.2 days a year earlier.
A record 57% of homes sold above list price, up from 48% a year earlier.
Although our housing market remains very competitive, this data shows that we still haven’t seen the full effects of mortgage rates above 5%.
Although we have a strong seller’s market across the United States on average, it’s not as elevated as one year ago. Basically, our market was faster. Now we’re going slower, and the reason why is that mortgage rates have been increasing greatly. Of course, we have all-time record highs for home prices, further causing housing affordability issues, and we’re starting to see home buying demand decreasing.
This is one big reason why housing affordability will be causing the market to slow down.
Let me know if you have any more questions. I would love to help you find the house of your dreams! Also, check out my Instagram page – realtor.katya. I hope you liked this post. If you’re interested to find out more about Miami news, check out these posts below.