The median U.S. residence sale value rose for the ninth consecutive week, hitting an all-time excessive of $397,482 through the 4 weeks ending July 7. A Redfin report printed on Thursday stated the upward climb in median gross sales costs contrasts with weakening homebuyer demand and elevated mortgage charges—two elements that normally result in softening residence value progress.
At Inman Join Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation can be banished, all of your huge questions can be answered, and new enterprise alternatives can be revealed. Be part of us.
The median U.S. residence sale value rose for the ninth consecutive week, hitting an all-time excessive of $397,482 through the 4 weeks ending July 7. A Redfin report printed on Thursday stated the upward climb in median gross sales costs contrasts with weakening homebuyer demand and elevated mortgage charges — two elements that normally result in softening residence value progress.
“Sale prices have remained stubbornly high despite elevated mortgage rates pushing down homebuying demand; pending home sales are down 3.5 percent year over year and mortgage-purchase applications are down 13 percent,” the report learn. “That’s partly because inventory remains historically low, pushing up prices and pushing down sales.”
“And it’s partly because final sale prices are a lagging indicator — they reflect deals that were struck between buyers and sellers a month or two earlier,” it added.
The rally in median residence value progress might quickly finish as stock rises and purchaser exercise slows amid intensifying financial uncertainty.
New listings rose 7.3 p.c yr over yr through the 4 weeks ending July 7, bolstering whole stock ranges 18.3 p.c above final yr as homesellers tire of halting their plans for higher charges. New itemizing progress was strongest within the West and Southeast, with San Jose, California (+29.3 p.c); Jacksonville, Florida (+21.2 p.c); Las Vegas (+21.2 p.c); Miami (+19.9 p.c) and Phoenix (+16.4 p.c) experiencing the largest features.
Nonetheless, properties are promoting a lot slower than the speed the market has grow to be used to over the previous a number of years. A whopping 60 p.c of properties in the marketplace sit for at the very least a month earlier than going below contract — a stark distinction to 2020 and 2021, when properties generally bought inside 24 hours.
Not solely are properties promoting slower, the report stated, however they’re additionally promoting for barely much less. The everyday residence bought through the 4 weeks ending July 7 went for 0.4 p.c under the asking value. Though that looks like a negligible tilt in consumers’ favors, Redfin stated it’s the primary time since July 2020 that the standard residence has bought under the asking value, hinting that homesellers are starting to regulate their pricing expectations.
“Homes are sitting longer than they usually do this time of year, which has led to some — but not all — homes selling for a little bit less,” Bay Space Redfin Premier Agent Julie Zubiate stated in a written assertion. “The longer rates stay high, the pickier buyers are getting. Buyers will jump ship or try to negotiate the price down with any sort of tiny problem; sellers should take the time to prep, price and promote their homes correctly to find the right buyer.”
“That being said, there is one segment of the market that is still moving fast, with homes going over asking price with multiple offers: Move-in ready homes with big backyards located in desirable school districts,” she added.
