According to Redfin, the average U.S. home is currently selling for about $383,000, which is only $4,000 less than the all-time high set in June. This represents a minimal year-over-year drop of -1%, marking the smallest decrease in almost four months.
Recent data indicates that the sale-to-list price ratio has reached 100% for the second time since last August. This means that, on average, homes are now selling for their listed price.
The scarcity of homes for sale is a significant factor in maintaining stable prices. Additional data reveals a 27% year-over-year decrease in new listings during the four weeks ending June 25, the largest drop since the start of the pandemic. Consequently, the total number of homes for sale has declined by 11%—the first double-digit drop in over a year.
The decline in inventory can be attributed to high mortgage rates, as many homeowners are choosing to stay in their homes to hold onto their favorable interest rates. Despite a slight decrease in average 30-year mortgage rates in recent weeks, they remain close to 7%, which is more than double the record-low levels seen in 2021.
On June 28th, the average daily 30-year fixed mortgage rate stood at 6.91%, a decrease from the previous month’s half-year high of 7.14%. Furthermore, for the week ending June 22nd, the average rate was 6.67%, slightly lower than the eight-month high of 6.79% recorded earlier in the month.
Despite high mortgage rates, homebuyers continue to outnumber sellers, resulting in a 15% decrease in pending home sales. However, this decline is smaller than the drop in new listings. As a result, homebuyers are purchasing properties faster than they are being listed, contributing to sustained high home prices.
In regards to the real estate market, Oakland Redfin Premier agent Andrea Chopp states that it is currently not as fast-paced as it was 18 months ago, but also not as slow as it was six or seven months ago when mortgage rates initially spiked. While desirable homes still attract multiple offers and sell above the asking price, the level of competition is not as high as it was two years ago. Chopp advises sellers to price their homes fairly, invest in effective marketing, and consider making repairs and staging to enhance their chances of a successful sale