The increase in home inquiries and inspections in late 2022 is starting to translate into sales as mortgage rates fall. Mortgage applications are up 25% and the slowdown in pending sales has subsided.
U.S. home sales rose 0.9% from a year earlier to $350,250 in the four weeks ended Jan. 15, the biggest increase in a month.
Rates remain elevated as consumer activity begins to pick up as mortgage rates decrease due to slower inflation. Mortgage rates fell to 6.15% in the week ending January 19, their lowest level since September. Pending home sales fell 29% year-over-year—a big drop, but the first down—30% in three months. Mortgage-for-sale applications arose 25% from the week before to the week ending January 13, a jump that could lead to more pending sales in the coming months.
As demand slows down, some homeowners are reluctant to sell. New listings of homes for sale fell 20% year-over-year in the four weeks ending Jan. 15—but it was the smallest drop in two months.
“People started researching homes online and scheduling home visits end of 2022 are now real home buyers,” said Redfin Deputy Chief Economist Taylor Mar. “Lower competition, lower mortgage rates and sales allowed which is bringing more sales back into the market. That helps keep the country’s home prices down, which is one of the bright spots for buyers. But many buyers are still sitting on the fence and demand may decrease if inflation declines more slowly than expected or mortgage rates rise again.
Home prices fell from a year earlier in 18 of the 50 most popular US metros
Home sales fell year over year in 18 of the 50 most populous US metros in the four weeks ending January 15. In contrast, 20 metros saw prices fall in the first four weeks and 11 metros saw prices fall in the previous month. .
Prices fell 10.1% year over year San Francisco6.7% c San Jose5.5% c Austin4.3% c Detroit3.8% c Seattle3.7% c Phoenix3.4% c Sacramento3.1% c San Diego2.8% c Anaheim, CA2.5% c Chicago2.4% c Angels2.3% c Oakland, CA and 2.2% in Boston. They fell less than 2% in Riverside, CA, Portland, OR, New york, Newark, NJand Las Vegas.
Top tips for buying a home:
- For the week ending January 19, 30-year mortgages fell to 6.15%. The daily average was 6.04% on January 18.
- Mortgage-buying applications the week ending January 13 jump 25% from the week before, adjusted times. Sales requests were down 35% from the year before.
- Google search for “house for sale” rose about 30% from their November low in the week ending January 14, but fell about 26% from a year earlier.
This week’s report does not include the Redfin Homebuyer Demand Index due to a data collection issue. Will be back next week.
Real estate market statistics for 400+ US metro areas:
Unless otherwise noted, data in this report include four weeks ending January 15. Redfin’s weekly housing market data goes back to 2015.
Data related to home listings and/or sales during the period:
- The cost of buying a home is $350,000, up 0.9% per year, the highest monthly income.
- The average price of newly listed homes was $357,200, up 3.9% year over year, the largest increase in two months.
- The monthly mortgage payment for the house is priced at $2,262 at 6.15% of the current mortgage. That’s unchanged from the week before and down $245 from the October high. Monthly mortgage payments are up 30% from last year.
- Pending home sales fell 29.1% year over year. This is the first drop of 30% in three months.
- Among the 50 most popular US metros, pending sales fell in Las Vegas (-63% YoY), Phoenix (-56.3%), Austin (-53.7%), Nashville (-52.9%) and Jacksonville, FL ( -52.4%). ).
- Although they fell in all 50, they refused the smallest in Chicago (-12.8%), Pittsburgh (-20.1%), San Francisco (-23.2%), Boston (-24.4%) and Cleveland (-25%).
- New home listings for sale fell 20% year over year.
- Active listings (the number of homes listed for sale at any point in the season) rose 21.8% from a year earlier, the largest increase which has been annual since 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 4 months, up from 3.7 months a week earlier. more than 2 months in the previous year.
- 29% of homes under contract accepted an offer within the first two weeks on the market, up slightly from the previous week but down from 36% a year earlier.
- The homes that sold were on the market for an average of 45 days. That’s up two weeks from 31 days a year earlier and a record low of 18 days set in May.
- 21% of homes sold above their last list price, down from 40% a year earlier and the lowest since March 2020.
- On average, 4.3% of homes for sale each week had a price drop, down slightly from the week before and down from 5.3% the month before.
- The sales-to-list index, which measures how close homes are to their final price, fell 97.9% from 100.1% a year ago. it was earlier. That is the lowest level since March 2020.
Refer to our metrics information page for details of all metrics used in this report.