San Jose and Rochester are hotter than other
parts of the country; roughly three-quarters of homes that sold in
those metros last month fetched more than their asking price—a
higher share than anywhere else in the U.S.
(NASDAQ: RDFN) — The median U.S. home sale price rose 6.2% year
over year in April to $433,558—the highest level on record,
according to a new report from Redfin (redfin.com), the
technology-powered real estate brokerage.
Today’s housing market is much slower than it was during the
pandemic homebuying boom, but prices continue climbing because
there still aren’t enough homes to go around.
New listings increased 1.7% month over month in April on a
seasonally adjusted basis and rose 10.8% year over year. Still,
they were roughly 20% below pre-pandemic levels, in large part
because many homeowners don’t want to sell, as they feel “locked
in” by the low mortgage rate they scored during the pandemic.
It’s worth noting that last April, new listings were at the
lowest level on record aside from the start of the pandemic, which
is one reason they’re now posting such a large year-over-year
gain.
Home sales were little changed from a month earlier (0.2%) in
April on a seasonally adjusted basis but were down 1.4% from a year
earlier.
Homebuyers are getting hit by the one-two punch of high prices
and elevated mortgage rates. The average 30-year-fixed mortgage
rate was 6.99% in April. That’s up from 6.82% in March and 6.34% in
April 2023, and is more than double the all-time low of 2.65%
during the pandemic.
“It’s not all bad news for homebuyers. Mortgage rates are
already inching lower in response to this week’s inflation report,
which signaled that the Fed may cut interest rates this summer—a
possibility that just weeks ago many thought was off the table,”
said Redfin Economics Research Lead Chen Zhao. “In certain parts of
the country, buyers also have room to negotiate as homes linger on
the market, prompting sellers to slash their asking prices and
provide concessions.”
Housing Supply—While Historically Low—Hit a Four-Year High in
April as Homes Lingered on the Market
Active listings rose to the highest level since December 2020 in
April. They were up 0.3% from a month earlier and up 7.5% from a
year earlier on a seasonally adjusted basis, though remained far
below pre-pandemic levels.
While new listings represent the number of homes that were
listed for sale during a given month, active listings represent the
total number of homes that were for sale during a given month. That
means that the latter metric includes homes that have been sitting
on the market for a while.
Nationwide, 43.9% of homes that went under contract in April did
so within two weeks of being listed, down from 46.9% a year
earlier.
18% of Home Sellers Are Cutting Their Asking Prices
Nearly one in five (17.6%) homes for sale in April had a price
cut, meaning the seller lowered the asking price after putting
their home on the market. That’s up 5.6 percentage points from
12.1% a year earlier—the biggest gain in over a year.
“Most sellers in Las Vegas are willing to negotiate—anywhere
from 5% to 10% off their list price,” said local Redfin Premier
real estate agent Fernanda Kriese. “Sellers are offering buyers
money for mortgage-rate buydowns, along with other concessions.
Homes that are listed below market value get multiple offers and
are snatched up in two to four days, but homes that are priced
$5,000 to $10,000 over market value are sitting for 30 to 60 days
longer.”
Las Vegas, like many pandemic boomtowns, has seen its housing
market cool following the homebuying frenzy of 2021 and 2022.
But other markets haven’t cooled as quickly, and some are seeing
substantial competition between homebuyers. In San Jose, CA, for
example, three in four homes (75.8%) that sold in April went for
more than their asking price. That’s up from 61.6% a year earlier
and is the highest share among the metros Redfin analyzed. Next
came Rochester, NY, at 72.8%, and Oakland, CA, at 69.7%.
Nationwide, one-third (33.5%) of homes that sold in April went for
more than their asking price.
Redfin recently surveyed its agents and found that the majority
of respondents (74.4%) think the 2024 housing market is shaping up
to be more favorable for sellers than buyers. That’s likely in part
because sellers are fetching record-high prices for their homes.
The survey, conducted by Qualtrics in April-May 2024, was fielded
to roughly 300 Redfin Premier agents.
April 2024 Highlights: United States
April 2024
Month-Over-Month Change
Year-Over-Year Change
Median sale price
$433,558
3.2%
6.2%
Homes sold, seasonally adjusted
425,102
0.2%
-1.4%
New listings, seasonally
adjusted
522,713
1.7%
10.8%
All homes for sale, seasonally adjusted
(active listings)
1,617,980
0.3%
7.5%
Months of supply
2.3
-0.2
0.1
Median days on market
35
-5
-2
Share of for-sale homes with a price
drop
17.6%
1.9 ppts
5.6 ppts
Share of homes sold above final list
price
33.5%
3.5 ppts
0.1 ppts
Average sale-to-final-list-price
ratio
99.7%
0.4 ppts
0.2 ppts
Share of homes that went under contract
within two weeks
43.9%
-1.4 ppts
-3 ppts
Average 30-year fixed mortgage
rate
6.99%
0.17 ppts
0.65 ppts
Note: Data is subject to revision
Metro-Level Highlights: April 2024
Data in the bullets below came from a list of 85 U.S. metro
areas with populations of at least 750,000. A full metro-level data
table can be found in the “download” tab of the dashboard in the
monthly section of the Redfin Data Center. Refer to Redfin’s
metrics definition page for explanations of metrics used in this
report. Metro-level data is not seasonally adjusted. All changes
below represent year-over-year changes.
- Prices: Median sale prices rose most from a year earlier
in Buffalo, NY (24.3%), Anaheim, CA (22.8%) and Rochester (15%).
They fell in just five metros: San Antonio (-1.6%), Memphis, TN
(-0.7%), Birmingham, AL (-0.7%), North Port, FL (-0.2%) and Austin,
TX (-0.1%).
- New listings: New listings rose most in San Jose
(46.9%), Tacoma, WA (38.3%) and Oakland (38%). They fell in one
metro Redfin analyzed: Greensboro, NC (-1.6%).
- Active listings: Active listings rose most in Cape
Coral, FL (50.6%), North Port (49.1%) and Fort Lauderdale, FL
(42.2%). They fell most in Raleigh, NC (-12.3%), New Brunswick, NJ
(-8.7%) and Lake County, IL (-7.4%).
- Closed home sales: Home sales rose most in San Jose
(38.2%), San Francisco (30.4%) and Stockton, CA (23.2%). They fell
most in Fresno, CA (-3.5%), Jacksonville, FL (-3%) and Albany, NY
(-2.6%).
- Sold above list price: In San Jose, 75.8% of homes sold
above their final list price, the highest share among the metros
Redfin analyzed. Next came Rochester (72.8%) and Oakland (69.7%).
The shares were lowest in North Port (6.8%) West Palm Beach, FL
(7.1%) and Cape Coral (9.3%).
- Off market in two weeks: In Rochester, 84.6% of homes
that went under contract did so within two weeks—the highest share
among the metros Redfin analyzed. Next came Seattle (75.9%) and
Buffalo (74.5%). The lowest shares were in Honolulu (7.4%), Tucson,
AZ (16.6%) and Chicago (16.9%).
To view the full report, including charts, please visit:
https://www.redfin.com/news/housing-market-tracker-april-2024/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
rentals, lending, title insurance, and renovations services. We run
the country's #1 real estate brokerage site. Our customers can save
thousands in fees while working with a top agent. Our home-buying
customers see homes first with on-demand tours, and our lending and
title services help them close quickly. Customers selling a home
can have our renovations crew fix it up to sell for top dollar. Our
rentals business empowers millions nationwide to find apartments
and houses for rent. Since launching in 2006, we've saved customers
more than $1.6 billion in commissions. We serve more than 100
markets across the U.S. and Canada and employ over 4,000
people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity
Home Loans®, Rent.™, Apartment Guide®, Title Forward® and
WalkScore®.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
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version on businesswire.com: https://www.businesswire.com/news/home/20240517700892/en/
Redfin Journalist Services: Isabelle Novak, 414-861-5861
press@redfin.com
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