Redfin Reports Low Mortgage Prices Due To Easing Competition

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Seattle, Jul 23, 2021 / PRNewswire / – (NASDAQ: RDFN) – Supply in the housing market is gradually gaining momentum as the number of homes for sale begins to pile up and unfinished sales continue to decline steadily and seasonally, according to the new report from Redfin (redfin.com), a high-tech real estate brokerage company.

As both of these trends continue in the coming weeks, prices will stop rising as quickly as before, and more homes for sale will experience price declines.

Key housing market findings for over 400 US metro areas:
Unless otherwise stated, this data refers to end of the four week period July 18… Redfin housing market data refer to 2012.

Data is based on homes listed and / or sold during the period:

  • The average home sales price increased by 20% year-over-year to USD 364,160, an all-time high.
  • Asking prices for recently listed homes are up 12% over the same period last year and averaged USD 360,975… This is far from the all-time high set during the four-week period ending. 27th of June, and offer prices have remained virtually unchanged since the end of May.
  • Home sales in progress were up 9% year over year, the smallest increase since the end of the four-week period. June 28, 2020… Sales in progress were down 11% from the 2021 peak in the four-week period ended. May 30, compared with a decrease of 4% compared to the same period in 2019.
  • New home listings are up 2% year over year. The number of listed homes shows a typical seasonal decline, down 8% from the 2021 peak during the four-week period ending. May 23, compared to a 12% decrease over the same period in 2019.
  • Active listings (the number of homes for sale at any given point during the period) fell 29% from 2020 – the smallest decline since the four-week period ending January 17 – and are up 10% from the 2021 low over the four-week period. the ending 7 march
  • 52% of contracted homes had an accepted offer within the first two weeks on the market, well above 44% in the same period a year ago, but 5 percentage points below the year high set during the end of the four-week period 28 march
  • 38% of contracted homes had an accepted offer within one week of market entry, up from 32% in the same period a year earlier, but 5.5 percentage points below the peak of the year set within four months … end of the weekly period 28 march
  • The homes sold were on the market for an average of 15.2 days, higher than the historic low of 15 days in the previous month and lower than 37 days a year earlier.
  • 55% of homes were sold above the list price, up from 29% a year earlier. This figure is reaching a plateau: since the end of the four-week period, it has been 54-55%. 27th of June
  • The share of houses for sale with price reductions rose to 4.3%, continuing to exceed the 2020 level and approaching the 2019 level (4.7% currently in 2019).
  • The average sales price to list price ratio, which measures how close homes are selling to asking prices, has dropped by less than a tenth of a percentage point from its peak during the four-week period ending. 11 july up to 102.3%. In other words, the average home sold 2.3% above its asking price. This figure is 3.5 percentage points higher than a year earlier.

Other other major indicators of buying activity:

  • Mortgage Applications Decline 6% in Week (seasonally adjusted) during the week ended July 16… At the end of the week July 22 Rates on 30-year mortgages fell to 2.78%, their lowest level since early February.
  • From From January 1 to July 18Home tours company ShowTime showed that home tours were up 21%, up from a 48% increase over the same period last year.
  • Redfin’s Seasonally Adjusted Home Buyer Demand Index – a measure of requests for home tours and other services from Redfin agents – declined slightly during the week ending July 18, and was 16% higher than a year earlier.

For the end of one week July 184.9% of listings had price declines compared to 2019 levels. Price cuts are more common in places like Phoenix, Austin and Bend, OR where prices rose the fastest due to the influx of Californians during the pandemic.

Even with an increase in the share of houses with a decline in prices, overall prices continue to rise. One of the factors contributing to this is the fall in mortgage rates, which reached their lowest level this week (2.78%) since the beginning of February.

The Redfin Homebuyer Demand Index remains higher than a year ago and has been on an upward trend in recent weeks, suggesting that interest in home buying remains strong (Google property searches also show recent growth). However, the number of applications for the purchase of mortgages is declining. The rise in new offers, which are still up 2% year-over-year, should make it a little easier for potential home buyers.

“As buyers leave, more and more offers are coming into the market,” said the chief economist at Redfin. Daryl Fairweather… “I am optimistic that this will create the conditions for a little rain in this drought of inventory. A homeowner who is thinking of selling in order to buy again will find it much easier now than it was in March. This is because it is becoming less competitive to buy and it is still a historically good time to sell. “

To view the full report, including charts and methodology, visit: https://www.redfin.com/news/housing-market-update-pending-sales-declining/

About Redfin
Redfin (www.redfin.com) is a technology real estate broker, instant home buyer (iBuyer), lender, title insurer, and renovation company. We sell houses at a premium and charge half the price. We also operate the # 1 real estate website in the country. Our home buying clients are the first to see homes with tours on demand, and our lending and title services help them close quickly. Buyers selling a home can take advantage of an Instant Cash Offer from Redfin or ask our renovation team to renovate their home to sell for big bucks. Since launching in 2006, we have saved more than 1 billion dollars in commissions. We serve over 95 markets in the US and Canada and employs over 4100 people.

For more information or to contact your local Redfin real estate agent, visit www.redfin.com… For housing trends and data downloads, visit Data center Redfin… To add to the Redfin press release mailing list, email [email protected]… To view the Redfin press center, Click here

SOURCE Redfin

Related links

https://www.redfin.com

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