{"id":76538,"date":"2023-07-27T04:00:02","date_gmt":"2023-07-27T11:00:02","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=76538"},"modified":"2023-07-26T15:50:28","modified_gmt":"2023-07-26T22:50:28","slug":"housing-market-update-biggest-home-price-increase-since-november","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-update-biggest-home-price-increase-since-november\/","title":{"rendered":"Housing Market Update: Homes Prices Are Up 3% Year Over Year, Biggest Increase Since November"},"content":{"rendered":"

A lack of homes for sale is pushing prices up. Inventory posted its biggest decline in 18 months as homeowners cling to relatively low mortgage rates.\u00a0<\/span><\/i><\/p>\n

The typical U.S. home sold for roughly $382,000 during the four weeks ending July 23, up 2.6% from a year earlier, the biggest increase since November. Still, homebuyers are getting a modicum of relief as mortgage rates inch down from the eight-month high hit a few weeks ago. The typical monthly mortgage payment is $2,599 at today\u2019s average weekly rate, down $55 from the all-time high of $2,654 in early July.\u00a0<\/span><\/p>\n

Today\u2019s housing market is unusual because prices are increasing despite lukewarm demand. Redfin\u2019s Homebuyer Demand Index\u2013a measure of requests for tours and other homebuying services from Redfin agents\u2013is down 3% from a year ago, and mortgage-purchase applications are down about 23%. But inventory has dropped more than demand, with homeowners <\/span>hanging onto<\/span><\/a> their comparatively low mortgage rates, which is sending prices up. New listings are down 22% from a year ago, and the <\/span>total <\/span><\/i>number of homes for sale is down 17%, the biggest decline in a year and a half. Pending sales are down 15%, partly because the lack of inventory is tying potential homebuyers\u2019 hands.\u00a0<\/span><\/p>\n

This week\u2019s <\/span>news<\/span><\/a> that the Fed is no longer forecasting a broad economic recession is hopeful for the housing market, despite the simultaneous interest-rate hike. The Fed indicated that a <\/span>soft landing<\/span><\/a> is more likely than they had previously thought, which would mean\u00a0 interest rates went high\u00a0 enough to tame inflation but not enough to cause a surge in unemployment and send the economy into a recession.\u00a0<\/span><\/p>\n

\u201cThis is hopeful news for the housing market in a few ways,\u201d said Redfin Economic Research Lead <\/span>Chen Zhao<\/span><\/a>. \u201cAvoiding a recession means Americans will hold onto their jobs, for the most part, and feel more confident about purchasing big-ticket items like a house. Steady progress on taming inflation means that while mortgage rates will probably stay elevated for at least a few months, they\u2019re likely to start coming down before the\u00a0 end of the year. That should encourage some sellers and buyers to jump into the market.\u201d<\/span><\/p>\n

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