The U.S. housing market’s shortage of properties for sale continues to worsen, according to new data from Redfin (NASDAQ:RDFN).
Redfin reported that new listings of homes for sale fell 22.4% year-over-year during the four weeks ending April 23, which is among the biggest declines since the pandemic began in March 2020. The absence of new listing is blamed on homeowners who are eager to retain their low mortgage rates and are unwilling to pay higher rates on a new home.
The dearth of inventory has resulted in faster home sales – Redfin found nearly half of homes on the market are selling within two weeks, the highest share in nearly a year. Further fueling speedy sales is the decline in home prices – the U.S. median sale price is down 2.8% year-over-year.
“High mortgage rates have caused some homebuyers to bow out of the market. But there are still more people looking for a home than there are homes for sale,” said Redfin Deputy Chief Economist Taylor Marr. “That’s good news for the homeowners who want or need to sell their home now. In certain parts of the country where new listings are especially rare, sellers who price their homes in line with the market are attracting multiple offers. Propped-up home prices and values also bode well for the future of the housing market because they may eventually lure more prospective sellers off the sidelines.”
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