The median U.S. home price was $371,875 at the conclusion of the four-week period ending May 14, according to data from Redfin (NASDAQ:RDFN). That represents a 2.7% drop, the smallest decline in over a month.
The median asking price of newly listed homes was $398,429, down 0.3% from a year earlier and the first time that asking prices have posted an annual decline since May 2020.
Home sale prices declined in 28 of the nation’s 50 largest metro areas, with the biggest year-over-year drops in Austin (-17.8%), Oakland (-16.3%), San Francisco (-13.1%), Las Vegas (-11.4%) and San Jose (-9.6%). On the flip side, sale prices increased most in Milwaukee (9.2%), Fort Lauderdale (9%), New Brunswick, New Jersey (6.4%), Indianapolis (4.9%) and Newark (4.4%).
However, the continued elevation of mortgage rates continued to keep many would-be sellers in their homes and frustrated many buyers who are paying more for a residential property.
“High mortgage rates continue to dictate the housing market. Although a lot of homebuyers have acclimated to rates in the 6% range and many are finding ways to lower their monthly payments, like using a 2-1 buydown, high rates are handcuffing potential sellers,” said Redfin Deputy Chief Economist Taylor Marr. “It’s hard to imagine a flood of new listings until rates come down at least into the 5s. For those who are selling now, the silver lining of giving up a low rate is that hardly anyone else is doing the same thing. That means buyers, who are hungry for new listings, will bite—and they don’t have much power to negotiate the price down.”
Redfin also noted that sold homes were on the market for a median of 31 days, the shortest span since September and 32.9% of homes sold above their final list price, the highest share since September but down from 54% a year earlier. On average, 5.1% of homes for sale each week had a price drop, up from 3.4% a year earlier. The average sale-to-list price ratio was 99.5%, the highest level since September but is down from 102.6% a year earlier.
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