U.S. Housing Market Update

Welcome back to the LUXE BLOG. Today, we’re here to share a housing market update, fresh from the data vaults of Redfin. Remember, from stats and figures to the latest real estate trends, we aim to keep you informed. With that said, we’re here to reveal insights take from new Redfin data.

Market Snapshot

According to new Redfin data:

• The median sale price of homes was slightly down by 0.9%, the smallest decline seen in the past four months.
• A YoY decrease in home sale prices was recorded in 25 metros, with Austin leading the drop.
• In contrast, home sale prices saw an upswing in areas like Providence and Milwaukee.
• Median asking price for newly listed homes experienced a marginal increase of 0.3% YoY.
• A 14.5% YoY decrease was observed in pending home sales.
• The rate of new listings fell significantly by 26.5% YoY, marking the largest decline since May 2020.
• Active listings saw a decrease of 11% YoY.
• The average sale-to-list price ratio stands at 100%, a figure achieved only twice in the past ten months.
• Homes typically stayed on the market for 27 days before being sold.
• 36.7% of homes were sold above their final list price.

Also Read: Gen Z Is Making Their Entry Into The Homeownership Arena

Median Asking Prices Stayed About The Same Year Over Year

Sales Prices

• The typical U.S. home is selling for around $383,000
• This is just $4,000 less (-1%) than the all-time high recorded last June
• The average home is now selling for its asking price

The minimal year-over-year drop in home-sale prices and the 100% sale-to-list price ratio are clear indicators of a stabilizing housing market.

Supply & Demand Dynamics

• New listings fell 27% from a year ago, the largest drop since the pandemic started
• Inventory is falling due to high mortgage rates
• Homeowners are holding onto their properties to maintain their comparatively low rates

In spite of the high rates deterring some homebuyers, they still outnumber home sellers. This implies that buyers are purchasing homes faster than they’re being listed, thereby keeping home prices stable.

Also Read: United States’ Housing Market: Insights From Altos Research

New Listings Fell 27% From A Year Ago, The Largest Drop In Years

Decoding Homebuying Activity

• The average 30-year fixed mortgage rate was 6.91% on June 28, 2023
• Mortgage purchase applications increased by 3% from a week earlier
• Demand for home tours and other services was up 10% from a year earlier

These leading indicators give us a broader picture of the current homebuying activities.

Williams Luxury Homes

In the fluctuating landscape of real estate, WLH pays attention. We are out here in the market every day. Should you be considering buying a piece of real estate in Arizona, we’d LOVE to assist. Our handpicked team of dedicated agents, with a combined experience of over 150 years, truly love what they do. We have you covered, from high-end condos and custom-built homes to land purchases and investment properties. Feel free to reach out. And thank you for reading LUXE BLOG.