Undeterred by high mortgage rates, homebuyers battling for limited inventory pushed the June median sale price to the second-highest level in history, according to new data released Monday by Redfin.
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Dangerously low inventory levels propelled the June median selling price to the second-highest level on record, according to a monthly market report published Monday by Redfin.
The majority of inventory indicators hit record highs in the month, with the total number of homes for sale down 15% year-on-year, marking the biggest annual decline in two years, according to the report. analysis of Redfin. New listings fell 30.6% year over year to 450,000, leaving homebuyers struggling with more than 1.8 months of supply.
Despite the lack of inventory, Redfin chief economist Daryl Fairweather said demand from homebuyers was steadily increasing and fueling the resurgence of bidding wars – something that pushed the median selling price of homes in the US at $426,056 in June – just 1.5% off a record high. of $432,397 in May 2022.
Daryl Fairweather
“Today’s real estate market is extraordinary; it is hot even though there are very few houses changing hands,” Fairweather said in a written statement. “Sellers get multiple offers if their home is priced well and in a desirable neighborhood, even if there aren’t many buyers.”
“It’s because house hunters have so few homes to choose from,” she added. “More buyers are starting to come out of the woodwork as they get used to high mortgage rates, making the market even hotter.”
The report indicates that the fight for housing is most intense in affordable markets, with Rochester, NY (+13.1%); Milwaukee, Wis. (+11.6%); and Omaha, NE (+10.4%) led in annual median selling price gains. Meanwhile, pandemic boomtowns Boise, ID (-10.4%), Austin, TX (-7.8%) and Las Vegas (-7.8%) – saw the sale price declines most important annuals.
Kimberly Hogue
Rochester-based Redfin agent Kimberly Hogue said high mortgage rates haven’t deterred homebuyers because they can find great listings at a relatively affordable price. However, she said buyers need to bid aggressively to get ahead of the competition.
“We haven’t really felt the effects of high mortgage rates on homebuyer demand in Rochester,” Hogue said in a written statement. “You can still find a nice house in a desirable part of town for $300,000 or less, and a lot of people here can afford the monthly payment for a house in that price range. Of course, these homes tend to sell for tens of thousands of dollars above the asking price. »
“There are a lot of remote workers moving in, and lately I’ve been helping several locals move farther away for more square footage,” she added. “I recently had a rural listing that got over 20 bids. One of the bidders offered to send the sellers on a cruise, but the sellers didn’t bite. Instead, they offered a offer $100,000 higher than the asking price.
Data from Redfin has proven that the Hogue experience is becoming more common, with 46.8% of real estate offers written by Redfin agents in June against the competition. Although this is 5 percentage points lower than last year and 23.6 percentage points lower than the January 2022 peak, pending sales data suggests the trend may continue through the month. summer.
Although seasonally adjusted pending sales are still down on a year-over-year basis (-16.2%), they have increased for three consecutive months on a monthly basis, with June pending sales rising 1.9% to their highest level since October 2021.
“Buyer demand has bottomed out,” Fairweather said. “High rates still give a lot of buyers pause, but the sticker shock isn’t as bad as it was when rates soared last year. With house prices back near record highs, buyers are also less fearful of buying a home that will plummet in value.
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