{"id":75534,"date":"2022-12-08T11:12:39","date_gmt":"2022-12-08T19:12:39","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=75534"},"modified":"2022-12-08T11:30:25","modified_gmt":"2022-12-08T19:30:25","slug":"housing-market-update-supply-record-increase-homes-linger","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-update-supply-record-increase-homes-linger\/","title":{"rendered":"Housing Market Update: Supply Posts Record Increase As Homes Linger on the Market"},"content":{"rendered":"

Redfin\u2019s Homebuyer Demand Index ticked up this week as steadily declining rates lured some buyers back in. But many would-be buyers are waiting for lower rates and prices, with the typical home\u2019s time on market rising at its fastest annual pace on record and supply increasing. <\/span><\/i><\/p>\n

The total number of homes for sale increased 15% year over year during the four weeks ending December 4, the biggest uptick on record. But new listings declined by more than 20%, which means homes are sitting on the market as prospective buyers stay on the sidelines and wait for mortgage rates and home prices to decline further from their peaks. That\u2019s also evidenced by a slowing market: The typical home that sold was on the market for 37 days, up from a record low of 17 days in June and up from 28 days a year earlier, the biggest year-over-year slowdown on record. Just 30% of homes sold within two weeks, the lowest share since January 2020.<\/span><\/p>\n

But Redfin\u2019s Homebuyer Demand Index is rebounding from its low point, up 5% from a week earlier, as mortgage rates continue to decline from their early-November peak. Rates dropped to 6.33% from 6.5% a week earlier, cutting the typical U.S. homebuyer\u2019s monthly housing bill by about $50.\u00a0<\/span><\/p>\n

\u201cThis week has been relatively calm and quiet as we approach the end of one of the most volatile years in housing history,\u201d said Redfin Deputy Chief Economist <\/span>Taylor Marr<\/span><\/a>. \u201cBut it\u2019s not over yet. Next Tuesday\u2019s inflation report is the 500-pound gorilla in the room, and the Fed\u2019s press conference the next day will bring us much more clarity on how soon and how quickly we can expect mortgage rates to come down in the new year. Since we expect only a <\/span>small decline<\/span><\/a> in prices next year, mortgage rates will dictate housing affordability, and as a result, demand and sales, in 2023. If rates continue declining, more buyers may wade back into the market, as they\u2019ll have lower monthly payments.\u201d\u00a0<\/span><\/p>\n

Home prices fell from a year earlier in 11 of the 50 most populous U.S. metros, mostly in California\u00a0<\/span><\/h4>\n

Home-sale prices fell from a year earlier in 11 of the 50 most populous U.S. metros, six of which are in California . Prices fell 7.8% year over year in <\/span>San Francisco<\/span><\/a>, 3.6% in <\/span>San Jose, CA<\/span><\/a>, 2.2% in <\/span>Los Angeles<\/span><\/a>, 1.4% in <\/span>Detroit<\/span><\/a>, 1.2% in <\/span>Sacramento<\/span><\/a> and 1.1% in <\/span>Pittsburgh<\/span><\/a>. They declined less than 1% in <\/span>Oakland, CA<\/span><\/a>, <\/span>Anaheim, CA<\/span><\/a>, <\/span>Austin<\/span><\/a>, <\/span>Philadelphia<\/span><\/a> and <\/span>Phoenix<\/span><\/a>.\u00a0\u00a0<\/span><\/p>\n

Although the decline was small, this marks the first time Phoenix home prices have fallen on a year-over-year basis since at least 2015, as far back as this data goes. It\u2019s the first time Anaheim prices have fallen since October 2019.\u00a0<\/span><\/p>\n

Leading indicators of homebuying activity:<\/span><\/h4>\n