Nearly half of the homes that are being listed for sale are being snatched up almost immediately, according to new data from Redfin (NASDAQ: RDFN).
For the four-week period ending April 30, Redfin found 48% of homes that sold during that period went under contract within two weeks, up from 46% a month earlier but down from 51% a year earlier. Redfin pointed out that the percentage of homes selling in two weeks usually peaks in March and falls in April, but this year the peak has yet to be reached.
New listings in April were down 23% year-over-year, the second biggest decline since the start of the pandemic. The median home sale price was $368,918, down 2.7% from a year earlier – and this marked the 10th consecutive four-week period of declines.
Redfin pointed out that uncertainty in the wider economy is not helping the housing market.
“While a pause in Fed rate hikes doesn’t mean a significant drop in mortgage rates is coming, it does at least alleviate one layer of uncertainty in the housing market,” said Redfin Economics Research Lead Chen Zhao. “Unexpectedly bad inflation data, more banking turmoil or failure to raise the U.S. debt ceiling could throw a wrench in the Fed’s plans, but homebuyers and sellers can feel a little more confident that mortgage rates won’t skyrocket again.”
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Be careful out there. People are not making as much money as the public is lead to believe. And, job loss is real along with inflation. Remember the 1980s and keep your pencil sharp.
Until builders cease erecting rentals and build units for sale, this will continue for the rest of the year if not longer.