{"id":76432,"date":"2023-06-29T05:00:24","date_gmt":"2023-06-29T12:00:24","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=76432"},"modified":"2023-06-28T11:25:08","modified_gmt":"2023-06-28T18:25:08","slug":"housing-market-update-home-price-declines-shrinking","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-update-home-price-declines-shrinking\/","title":{"rendered":"Housing Market Update: The Typical U.S. Home Is Selling For Just $4,000 Less Than Last Year\u2019s All-Time High"},"content":{"rendered":"

The median U.S. home-sale price is down just 0.9% year over year, the smallest decline in nearly four months. That\u2019s due to a lack of homes for sale, with a mismatch between supply and demand. New listings are down 27% from a year ago and pending sales are down 15%.\u00a0<\/span><\/i><\/p>\n

Home-price declines are shrinking. The typical U.S. home is selling for roughly $383,000, only about $4,000 less (-1%) than the all-time high set last June. That\u2019s the smallest year-over-year drop in nearly four months. Additionally, this is just the second time since last August the sale-to-list price ratio has hit 100%; in other words, the average home is now selling for its asking price.\u00a0<\/span><\/p>\n

A lack of homes for sale is keeping prices afloat. New listings fell 27% from a year earlier during the four weeks ending June 25, the biggest drop since the start of the pandemic. That has contributed to the <\/span>total<\/span><\/i> number of homes for sale declining 11%, the first double-digit drop in over a year.\u00a0 Inventory is falling because of high mortgage rates, with many homeowners <\/span>staying put<\/span><\/a> to hang onto their comparatively low rates. Although the average 30-year mortgage rate has inched down in recent weeks, it\u2019s still<\/span> near 7%<\/span><\/a>, more than double 2021\u2019s record-low levels.\u00a0<\/span><\/p>\n

High rates are also deterring homebuyers, but they still outnumber home sellers. Pending home sales are down 15%, significantly smaller than the drop in new listings. That means buyers are snapping up inventory faster than it\u2019s being listed, which is keeping home prices elevated.\u00a0<\/span><\/p>\n

\u201cThe market isn\u2019t nearly as fast as it was 18 months ago, when homes were flying off the market for well over asking price, and it\u2019s not as slow as it was six or seven months ago, when mortgage rates first shot up,\u201d said Oakland, CA Redfin Premier<\/a> agent Andrea Chopp<\/a>. \u201cBuyers should keep in mind that desirable homes are getting multiple offers and selling above asking price. And sellers should know that their home may not attract as much competition as their neighbor\u2019s home did two years ago, but it will sell if they price it fairly and put effort into marketing. Things like making small repairs and staging are important again.\u201d<\/span><\/p>\n

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