Tag Archives: Redfin Homebuyer Demand Index

Increased home listings and declining mortgage rates are breathing early signs of life into the homebuying market according to a new analysis from Redfin.

While a slight increase in new listings offers potential buyers more housing inventory to choose from, Redfin has found that many are backing out of the market, as mortgage rates sit near levels last seen two decades ago.

As mortgage rates remain elevated, a new market report from Redfin revealed the typical homebuyer’s monthly payment is now at a record high of $2,666, representing a near 9% year-over-year change as housing costs continue to rise nationwide.

Home prices were up 3% year-over-year, despite stunted demand due to a shortage of homes, as inventory nationwide posts its biggest slide in 18 months.

High mortgage rates have pushed monthly mortgage payments to a record $2,656, as slightly lower rates may escalate competition for the limited number of homes available and push up prices for the foreseeable future.

The overall lack of new listings nationwide has pushed the total number of homes on the market down 5% year-over-year, reaching their lowest level of any early June on record, according to a new housing market update from Redfin.

Declines in pending home sales were found by Redfin in pandemic homebuying hotspots of Las Vegas, Phoenix, and Austin, with each city reporting that pending sales plummeting more than 50%.

With mortgage rates recently declining, demand has shown early indications of increasing, according to Redfin’s most recent Homebuyer Demand Index.

Affordability issues are officially taking a toll on the market as the average asking price of a newly listed home is off 1.5% from its peak in spring in light of the rapid rate increase by the Federal Reserve in June.  ...

Homebuyers are beginning to take back the wheel from homesellers, who have mostly prevailed over the last two years. Redfin reports that more sellers are dropping the price of their homes amid rising interest rates and growing affordability concerns.