Less Buyers Doesn’t Equate to More Available Homes
There may be less buyers in today’s real estate market, but that’s not keeping them from gobbling up what’s out there to be purchased. And despite home demand falling, houses are selling faster than ever.
A new report from Redfin found in the four-week period ended May 8, the typical home for sale had a buyer within 15 days, the fastest pace on record.
As pending home sales posted their largest year-over-year decline since June 2020 at 6%, buyers who haven’t been priced out of the market are rushing to make a purchase before prices grow even higher. According to Redfin, today’s typical monthly mortgage payment is at a record high $2,427, a 44% increase from last year’s $1,685.
Redfin chief economist Daryl Fairweather attributes rising mortgage rates for taking a big bite out of home demand.
“But still, homebuyers who remain in the market are facing stiff competition, especially for the most desirable homes,” he said. “Given the lack of homes for sale, it would take a much larger drop in demand for buyers to really feel like the market has truly turned in their favor.”
For the four-week period ended May 8, the median asking price of newly listed homes rose 17% from 2021 to an all-time high of $411,350, while the median home price also rose 17% to $397,356, the largest increase since August.
Fifty-six percent of homes went under contract with an accepted offer within the first two weeks of being listed, up from 54% last year. Forty-two percent of homes went under contract with an accepted offer within one week, up from 41% in 2021, falling less than a percentage point from March’s record high.
Homes continue to sell faster, according to the report, as homes on the market fell to a record-low 15 days, a drop from 202.2 days in 2021. And they continue to sell well above asking price — a record 57% sold above list price, up from 48% last year.