Agent Offfers
Realty Times TV

Redfin Reports Home Supply Is Up For The First Time In Nearly 3 Years

Written by Posted On Thursday, 14 July 2022 10:23
Redfin Reports Home Supply Is Up For The First Time In Nearly 3 Years

High mortgage rates are keeping homebuyers on the sidelines, leading to declining home sales and a build-up of supply

The number of homes for sale nationwide in June rose 2%, the first annual increase since July 2019, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Supply has built up as the combination of 5.5%-plus mortgage rates, high home prices and a faltering economy push more buyers to the sidelines, thereby creating a more balanced market. Home sales fell nearly 16% from a year ago, the largest decline since May 2020. The shift has also started impacting sale prices: They’re still growing by double digits, but the 11% year-over-year increase is the smallest in nearly two years.

"The country's economic woes have already cooled the housing market, and they're likely to continue dampening demand," said Redfin Chief Economist Daryl Fairweather. "The Fed has signaled it may increase interest rates further to combat stubbornly high inflation, which could harm consumer confidence, and lower stock prices mean fewer prospective homebuyers can afford a down payment. I advise sellers to commit: If you decide to sell, do it quickly before demand falls further. And price carefully—this is not the time to test the waters. You’ll do more harm than good if you overprice and have to do a price reduction or take the home off the market."

The market is a mixed bag for buyers. They're seeing higher monthly housing payments than earlier this year due to comparatively high mortgage rates but facing less competition for homes, which often allows them to make less risky offers that include protections like inspection and appraisal contingencies.

National Highlights

Market Summary

  

June 2022

  

Month-Over-Month

  

Year-Over-Year

Median sale price

  

$428,400

  

-0.4%

  

11.2%

Homes sold, seasonally-adjusted

  

524,200

  

-4.3%

  

-15.5%

Pending sales, seasonally-adjusted

  

500,000

  

-1.5%

  

-12.6%

New listings, seasonally-adjusted

  

636,500

  

0.1%

  

-4.4%

All Homes for sale, seasonally-adjusted

  

1,450,900

  

2.4%

  

1.8%

Median days on market

  

18

  

1

  

3

Months of supply

  

1.7

  

0.2

  

0.5

Sold above list

  

55.5%

  

-3.7 pp†

  

-0.9 pp†

Median Off-Market Redfin Estimate

  

$421,300

  

0.4%

  

21.1%

Average Sale-to-list

  

102.3%

  

-0.8 pp†

  

-0.2 pp†

Average 30-year fixed mortgage rate

  

5.52%

  

+0.29 pp†

  

+2.54 pp†
             

† - “pp” = percentage-point change

Metro-Level Highlights

Competition

  • Denver and Indianapolis were the fastest markets, with half of all homes pending sale in just 5 days. Grand Rapids, MI, Omaha, NE and Oklahoma City were the next-fastest markets, with 6 median days on market.
  • The most competitive market in June was Rochester, NY, where 80.5% of homes sold above list price, followed by 76.8% in Worcester, MA, 76.2% in Oakland, CA, 75.4% in Buffalo, NY, and 75.0% in Hartford, CT.

Prices

  • North Port, FL had the nation’s highest price growth, with home prices rising 29.7% since a year earlier to $480,000. Cape Coral, FL had the second-highest growth at 27.7%, followed by Tampa, FL (26.1%), Fort Worth, TX (24.2%), and Knoxville, TN (24.1%).
  • Only San Francisco (-0.5%) saw price declines in June.

Sales

  • No metro areas saw home sales increase from a year earlier in June. Greenville, SC had the smallest decline, with home sales dropping 2.3% year over year, followed by Worcester, MA, down 4.1%. El Paso, TX rounded out the top three with sales down 7.2% from a year ago.
  • West Palm Beach, FL saw the largest decline in sales from a year earlier, falling 34.1%. Next came Anaheim, CA and Miami, where home sales declined by 33.6% and 33.5%, respectively.

Inventory

  • North Port, FL had the biggest increase in the number of homes for sale, up 34% year over year, followed by Colorado Springs, CO (31.5%) and Austin, TX (26.9%).
  • Allentown, PA had the largest decrease in the number of homes for sale, falling 41.1% since last June. Hartford, CT (-29.2%), Greensboro, NC (-28.6%), and Bridgeport, CT (-27.9%) came next.

To view the full report, including charts, metro-level data and methodology, please visit: https://www.redfin.com/news/more-homes-for-sale-first-time-since-2019/

Rate this item
(0 votes)
Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent. You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

https://www.redfin.com

Latest from Redfin

back to top

Agent Resource

Before You List

Today's Headlines

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.

Links

Sections

Search

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries