Thanks to lack of inventory, the median US home-sale price is just 0.9% lower than a year ago, per Redfin. Homes are selling on average for $383,000, about $4,000 less than the all-time high set last June. At the same time, Redfin reported that the average home is now selling for its asking price for only the second time in nearly a year. Loading Something is loading.
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A lack of inventory is propping up US home prices, and houses are selling close to record highs set last year, according to Redfin data.
The median US home sale price is down 0.9% annually, marking the smallest year-over-year decline in almost four months. The going price for a typical home is about $383,000, just $4,000 below last June’s all-time high.
“The market isn’t nearly as fast as it was 18 months ago, when homes were flying off the market for well over asking price, and it’s not as slow as it was six or seven months ago, when mortgage rates first shot up,” Oakland, California-based Redfin agent Andrea Chopp said.
Redfin Plus, per Redfin, for just the second time since last August, the typical home is now selling for its asking price.
Near-7% mortgage rates are contributing to a lack of affordability, and that’s made it more attractive for current homeowners who locked in lower rates to stay put rather than move and refinance.
As a result, there are fewer homes listed for sale, and the few that do hit the market face steep competition among buyers.
In the four weeks up to June 25, new home listings fell 27% compared to a year earlier — the steepest drop-off since the start of the pandemic. At the same time, the total number of homes on the market declined 11%.
Meanwhile, pending home sales are down 15%. Because the figure shows a smaller drop than new listings, that suggests house hunters are buying up inventory at a faster rate than homes are being listed.
“Buyers should keep in mind that desirable homes are getting multiple offers and selling above asking price,” Chopp said. “And sellers should know that their home may not attract as much competition as their neighbor’s home did two years ago, but it will sell if they price it fairly and put effort into marketing. Things like making small repairs and staging are important again.”