November 26, 2022

SEATTLE–(BUSINESS WIRE)–(NASDAQ: RDFN) — Applications for mortgage purchases and Redfin’s Homebuyer Demand Index both rose, while interest rates remained around 6.6%, a sharp drop from 7% earlier this month, pushing the average buyer more than Save $100 in monthly mortgage payments. Still, supply piles up — with record year-on-year increases — as current sales are down the most on record. This is according to a new report from Redfin (redfin.com), the technology-driven real estate brokerage.

Leading indicators of home buying:

  • For the week ending Nov. 23, 30-year mortgage rates fell to 6.58%.

  • Applications for mortgage purchases during the week ending Nov. 18 were up 8.7% from a month earlier, seasonally adjusted. Purchase orders were 41% lower than a year earlier.

  • Fewer people searched for “houses for sale” on Google than this time in 2021. The number of searches in the week ending Nov. 19 was about 38% lower than a year earlier.

  • The seasonally adjusted Redfin Homebuyer Demand Index – a measure of requests for house calls and other home buying services from Redfin agents – was up 1.6% month-on-month, but down 33% year-on-year during the four weeks ending Nov. 20.

  • Touring activity was down 35% from the start of the year as of Nov. 20, compared to a 3% year-over-year decline at the same time last year, according to home tour technology company ShowingTime.

Key takeaways from the housing market for more than 400 U.S. metropolitan areas:

Unless stated otherwise, this data refers to the four-week period ending November 20. Redfin’s weekly housing market data goes back to 2015.

  • The median home sales price was $356,149, up 2.1% year-over-year, the smallest increase since the start of the pandemic.

  • Of the 50 most populous US metropolitan areas, house prices fell in five from a year earlier. Prices fell 9.5% year over year in San Francisco, 2.1% in Sacramento, 1.7% in Detroit and less than 1% in San Jose, CA and San Diego.

  • Of the 50 most populous U.S. metros, pending sales fell the most from a year earlier in Las Vegas (-64%), Austin (-58.2%), Phoenix (-57%), Jacksonville, FL (-57 %) and Sacramento (-54%).

  • The median asking price of newly listed homes was $363,600, up 4.6% year-over-year, the lowest growth rate since the start of the pandemic.

  • The monthly mortgage payment for the home with the median asking price was $2,384 at the current mortgage rate of 6.58%. That is slightly lower than a week earlier and 6% lower than two weeks earlier, when mortgage interest was 7.08%. That equates to $140 in monthly mortgage savings from two weeks ago for the average buyer. Still, monthly mortgage payments are 41% higher than a year ago.

  • Pending home sales fell 35.2% year over year, the biggest decline since at least January 2015, as far as this data goes.

  • The number of new homes for sale is down 20% from a year earlier, one of the largest declines since the start of the pandemic.

  • The number of active listings (the number of homes for sale at any point in the period) is up 11.6% from a year earlier, the largest annual increase since at least 2015.

  • Months of Supply – a measure of the balance between supply and demand, calculated by dividing the number of active listings by closed sales – was 3.5 months, the highest level since June 2020.

  • 32% of homes that came under contract had an accepted offer on the market within the first two weeks, little changed from the previous four-week period, but less than 40% a year earlier.

  • Homes sold were on the market for an average of 36 days, more than a week more than 28 days a year earlier and more than the low of 17 days in May and early June.

  • 27% of homes were sold above the final list price, up from 42% a year earlier and the lowest level since July 2020.

  • On average, 7.3% of homes for sale each week had price falls, up from 3.4% a year earlier, but slightly less than the previous two weeks.

  • The average selling price ratio, which measures how close homes are selling to their final asking price, fell from 100.4% a year earlier to 98.5%. That is the lowest level since June 2020.

For the full report, including charts, visit: https://www.redfin.com/news/housing-market-update-homebuying-demand-ticks-up-rate-drop

About Robin

Redfin (www.redfin.com) is a technology-driven real estate company. We help people find a place to live with brokerage, rentals, loans, property insurance and renovation services. We sell homes for more money and charge half the fee. We also run the number 1 real estate brokerage site in the country. Our homebuying clients see homes first with on-demand tours, and our loan and ownership services help them close quickly. Clients selling a home can have our home renovation crew refurbish their home and sell it for top dollar. Our rental company enables millions of people across the country to find apartments and houses for rent. Since launching in 2006, we’ve saved clients over $1 billion in commissions. We serve more than 100 markets in the US and Canada and employ more than 5,000 people.

For more information or to contact a local Redfin broker, visit www.redfin.com. Visit the Redfin Data Center for more information on housing market trends and data downloads. Send an email to [email protected] to be added to Redfin’s press release distribution list. Click here to view Redfin’s press center.

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