Last month’s median U.S. home price fell 3.3% year-over-year to $400,528, the largest year-over-year drop since 2012, according to new data from Redfin (NASDAQ:RDFN).
Redfin noted that much of the decline was fueled by the “pandemic boomtowns and pricey Bay Area markets.” Among the metro area culprits were Boise (-15.4% year-over-year), Austin (-13.7%), Sacramento (-11.9%), San Jose (-10.5%) and Oakland (-9.7%). Boise also recorded the greatest plummet in pending home sales, with a 78.8% year-over-year tumble – in comparison, the nationwide pending sales decline was 26.6% on a seasonally-adjusted basis to the lowest level since April 2020, the onset of the pandemic.
Redfin also observed that 44.3% of the home offers written by its agents faced competition in March, with the bidding-war rate hovering near that level for the past five months after nearly a year of month-over-month declines.
Elevated mortgage rates and a tight inventory complicated the sales environment, especially with many homeowners delaying their sales until rates come down significantly.
“This year’s spring homebuying season is lackluster,” said Redfin Chief Economist Daryl Fairweather. “There are some signs of the typical seasonal uptick – homes are selling faster than they were in the winter – but that’s partly because there are so few new listings. Normally we see homebuyers come out in throngs at this time of year, which isn’t happening.”
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