The median home sale price increased year-over-year by 1.5% during the four weeks ending July 9, according to data from Redfin (NASDAQ:RDFN), which noted this was first increase in nearly five months.
The median home sale price of $383,750 was only $2,500 below record high from June 2022.
Year-over-year sale prices increased most in Milwaukee (up 13.5%), the Rhode Island capital of Providence (up 9.2%) and Miami (up 7.8%); prices were down in 19 major metros, most notably Austin (-9%), Detroit (-7.4%) and Las Vegas (-6%).
While prices were up, new listing were not. Redfin reported the 27% year-over-year decline in new listings was the biggest drop since the beginning of the pandemic, while 14% year-over-year decline in the total number of homes on the market is the biggest drop since March 2022.
“This month’s inflation report is likely to bring mortgage rates down a bit from their recent highs. It shows that the Fed’s interest-rate hikes are working and increases the chance they’ll only hike rates one more time this year,” said Redfin Economic Research Lead Chen Zhao. “Because elevated mortgage rates are responsible for both of today’s major homebuying challenges—high monthly housing payments and low inventory—any decline is welcome news for buyers. But even though rates will come down slightly, they’ll likely remain well above 6% until the Fed sees several more months of inflation readings closer to their target.”
Builders and contractors are purposely slowing production and inventory. They know that by keeping inventory low keeps demand high. It’s just no way in hell that 7% interest rate is going to drive up the market unless there was no houses available and since they don’t seem to want to build houses how is this ever going to get resolved. Covid lockdowns made everything 10 times worse.