{"id":76155,"date":"2023-04-28T05:00:28","date_gmt":"2023-04-28T12:00:28","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=76155"},"modified":"2023-04-27T17:10:13","modified_gmt":"2023-04-28T00:10:13","slug":"housing-market-update-new-listings-decline","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-update-new-listings-decline\/","title":{"rendered":"Housing Market Update: Dearth of New Listings Keeps Home Prices From Falling Further"},"content":{"rendered":"

New listings are down more than 20% from a year ago as homeowners hang onto low mortgage rates. That\u2019s causing buyers to snap up homes quickly and keeping prices from falling further; prices are down by roughly 3% annually, similar to the declines we\u2019ve seen over the last month.<\/span><\/i><\/p>\n

New listings of homes for sale fell 22.4% nationwide from a year earlier during the four weeks ending April 23, one of the biggest declines since the start of the pandemic. Homeowners are staying put because they want to hang onto their low mortgage rates\u2013this week\u2019s average 30-year mortgage rate increased for the second week in a row\u2013and because it\u2019s hard for them to find another home to buy. The lack of new listings is driving an unseasonal decline in the <\/span>total <\/span><\/i>number of homes for sale.\u00a0<\/span><\/p>\n

The dearth of inventory is also making some homes sell quickly. Nearly half of homes on the market are selling within two weeks, the highest portion in nearly a year. The share has increased throughout April, atypical for this part of the year. That\u2019s in spite of elevated mortgage rates keeping some buyers on the sidelines, with pending home sales down 17% year over year.\u00a0<\/span><\/p>\n

Buyers are battling for the few homes on the market, keeping home prices from falling more. The U.S. median sale price is down 2.8% year over year, similar to the price declines we\u2019ve seen over the last month. Prices are falling more in some parts of the country and increasing in others; they\u2019re down most in <\/span>Austin, TX<\/span><\/a> (-13.7% YoY), <\/span>Oakland, CA<\/span><\/a> (-13.5%) and <\/span>San Francisco<\/span><\/a> (-12.3%).<\/span><\/p>\n

\u201cHigh mortgage rates have caused some homebuyers to bow out of the market. But there are still more people looking for a home than there are homes for sale,\u201d said Redfin Deputy Chief Economist <\/span>Taylor Marr<\/span><\/a>. \u201cThat\u2019s good news for the homeowners who want or need to sell their home now. In certain parts of the country where new listings are especially rare, sellers who price their homes in line with the market are attracting multiple offers. Propped-up home prices and values also bode well for the future of the housing market because they may eventually lure more prospective sellers off the sidelines.\u201d<\/span><\/p>\n

Phoenix<\/span><\/a> Redfin agent <\/span>Heather Mahmood-Corley<\/span><\/a> said demand is outpacing supply. \u201cNew listings have slowed over the last few weeks and buyers are clamoring for the homes that do come on the market,\u201d she said. \u201cNice, well-priced homes are getting multiple offers. I showed a home to a buyer last weekend and we had to wait in line because there were so many prospective buyers there. It was the first time in a year I\u2019ve had to wait in line to see a house.\u201d<\/span><\/p>\n

In <\/span>Seattle<\/span><\/a>, prices and pending sales have both declined more than the national average. But local Redfin agent <\/span>Shoshana Godwin<\/span><\/a> said she\u2019s noticing an uptick in demand this month. \u201cSome buyers are hoping to get a deal because mortgage rates are high, but prices for desirable homes are actually going up because there\u2019s such limited inventory,\u201d Godwin said. \u201cI\u2019m telling buyers that prices may rise from here because inventory will remain tight as long as interest rates are high. Those who can afford to should consider buying now if they\u2019re lucky enough to find a home they want.\u201d<\/span><\/p>\n

Leading indicators of homebuying activity:<\/span><\/h2>\n