Housing Market Update: Prices Go Up While Demand Goes Down

Housing Market Update: Prices Go Up While Demand Goes Down


Mortgage-purchase applications are sitting at their lowest level in nearly three decades. But there are so few homes for sale that prices are up 4.5% annually, the biggest increase in nearly a year.

Although mortgage rates are inching down from their recent peak, housing affordability isn’t improving much. With the median U.S. home-sale price up 4.5% year over year during the four weeks ending September 3 and mortgage rates remaining above 7%, the typical monthly mortgage payment is $2,612, just $18 shy of the all-time high set in May. High housing costs are dampening homebuying demand, with mortgage-purchase applications falling to a 28-year low

Prices are rising due to a supply shortage: The total number of homes on the market is down 18% year over year, the biggest decline since February 2022. New listings are down 9% as many homeowners refuse to part with relatively low mortgage rates. But there are still more buyers than sellers in much of the country.

“The market is marching on, especially for turnkey homes,” said Chicago Redfin Premier agent Niko Voutsinas. “If folks can figure out a way to buy instead of rent, they will. Some buyers are cutting back on other expenses to up their housing budgets because they believe home prices are only going to increase. They’re nervous that the minute rates come down, a flood of competition will edge them out. Those buyers typically need to move quickly and offer at or above the asking price if they love a home, because so few listings are hitting the market.” 

Leading indicators

Indicators of homebuying demand and activity
Value (if applicable) Recent change Year-over-year change Source
Daily average 30-year fixed mortgage rate 7.33% (Sept. 6) Down from a peak of 7.49% two weeks earlier  Up from 6.12% Mortgage News Daily 
Weekly average 30-year fixed mortgage rate 7.18% (week ending August 31) Down slightly from 7.23% a week earlier Up from 5.66% Freddie Mac
Mortgage-purchase applications (seasonally adjusted) Down 2% from a month earlier Down 28% Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted) Down 3% from a month earlier (as of the 4 weeks ending Sept. 3) Down 6% Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Google searches for “home for sale” Down 11% from a month earlier (as of Sept. 5) Down 16% Google Trends 
Home touring activity Down 16% from the start of the year, same as last year’s decline (as of Sept. 4) ShowingTime, a home-touring tech company

Key housing-market data

U.S. highlights: Four weeks ending September 3, 2023

Redfin’s national metrics include data from 400+ U.S. metro areas, and are based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. 

Four weeks ending September 3    Year-over-year change Notes
Median sale price $378,725 4.5% Biggest increase since October 2022
Median asking price $379,747 3.7% Biggest increase since November 2022
Median monthly mortgage payment $2,612 at a 7.18% mortgage rate 15% Just $18 shy of the all-time high 
Pending sales 83,271 -13.3% Continues 15-month streak of double-digit declines
New listings 82,136 -9.3% Smallest decline in over a year, but that’s partly because new listings fell rapidly at this time in 2022
Active listings 798,259 -18% Biggest decline since February 2022
Months of supply  2.8 months Unchanged 4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions.  
Share of homes off market in two weeks  39.3% +0.2 pts. 
Median days on market 29 Unchanged
Share of homes sold above list price 33.5% -0.1 pt.
Share of homes with a price drop 6.1% +0.1 pt. 
Average sale-to-list price ratio  99.6% Unchanged  Lowest level in over 3 months


Metro-level highlights: Four weeks ending September 3, 2023

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. 

Metros with biggest year-over-year increases Metros with biggest year-over-year declines Notes
Median sale price Newark, NJ (16.3%)

Miami (16.3%)

Anaheim, CA (12.8%)

San Diego (11.2%) 

Montgomery County, PA (11.1%)

Austin, TX (-6%)

Fort Worth, TX (-2.5%)

Phoenix (-2.2%)

Portland, OR (-1.1%)

San Antonio, TX (-1%)

Declined in just 9 metros
Pending sales n/a New Brunswick, NJ (-31.8%)

Seattle (-28.5%) 

Boston (-27.7%) 

Sacramento (-27.4%)

Atlanta (-25.9%)

Declined in all metros
New listings Milwaukee (3.9%)

San Jose, CA (3.6%)

Pittsburgh (3.2%)

Atlanta (-30.9%)

Las Vegas (-26.4%)

Riverside, CA (-21.2%) 

Cincinnati (-18.8%) 

Seattle (-18.2%)

Declined in all but 3 metros

Refer to our metrics definition page for explanations of all the metrics used in this report.

Dana Anderson

Dana Anderson

As a data journalist at Redfin, Dana Anderson writes about the numbers behind real estate trends. Redfin is a full-service real estate brokerage that uses modern technology to make clients smarter and faster. For more information about working with a Redfin real estate agent to buy or sell a home, visit our Why Redfin page.

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