New listings have become the housing market’s equivalent of an endangered species, as data report from Redfin (NASDAQ:RDFN) has determined new listings were down 25% year-over-year as of the four weeks ending June 4 – the lowest level of any early June on record.
Furthermore, the absence of new listing pushed the total number of homes listed for sale down 5% year-over-year, which is also the lowest level on record for early June. As a result of the limited inventory, national home price declines have been minimal – Redfin found the median home price at $379,463, down 1.6% year-over-year for the smallest decline in three months.
The Texas capital of Austin had the biggest year-over-year home sale price decline (-13.4%) while Cincinnati had the greatest sales price increase (9.2%).
“Elevated mortgage rates are driving the inventory shortage, with the daily average hitting 6.94% on June 7, near its highest level in two decades,” said Redfin in its data report. “The vast majority of homeowners have a mortgage rate below 6%, discouraging them from listing their home and giving up their relatively low rate.”
