The total number of U.S. homes for sale for the four weeks ending June 11 was 6% lower from one year earlier, according to data from Redfin (NASDAQ:RDFN). This is the biggest decline in 13 months.
Redfin reported new listings were down by 23%, which marked the tenth consecutive month of double-digit declines. There are 39% fewer homes for sale now than there were five years ago.
Redfin Economics Research Lead Chen Zhao predicted that more positive news was not on the horizon.
“The Fed’s indication that there are more rate hikes to come is not what homebuyers want to hear,” said Zhao. “It’s likely to keep mortgage rates elevated and may even push them up a bit. People who are sitting on the sidelines, waiting for mortgage rates to decline, should know that’s unlikely to happen in the foreseeable future. If a home that’s in your price range and has everything on your wish list hits the market, there’s no good reason to wait.”
Redfin also reported the median home sale price was $381,169, down 1.1% from a year earlier, the smallest decline in more than three months. The median asking price of newly listed homes was $398,475, up 0.3% from a year earlier.
Home-sale prices declined in 31 metros, with the biggest year-over-year drops in Austin (-13.1%), Las Vegas (-9%) and Oakland (-7.4%). Sale prices increased most in Miami (8.9%), Cincinnati (8.3%) and Fort Lauderdale (6.1%).
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Of course the industry is down by 40%. The rental corporations that have bought up 40%+ of available houses, without any interference by the government, is responsible for the staggering number of homes no longer for sale. It has thrown our entire economy off balance because of it.
agreed ????
I’ve been seeing this the entire pandemic in Lee county. They buy blindly. Any 3/2 bath in our area that is listed at the lowest available. They are putting low quality renters in these ares. They like the idea that families will rent longer. Someone should step in. Great comment!
This is a market creation of poor Federal policies. When you raise the interest rates and tighten lending, this is the result. No one who wants to downsize can afford to list the home as they will not qualify for the replacement property.
The institutional investors are buying up all the affordable housing. Look at your phone with all the AI asking you to buy anything you own. It is not the rate hikes. That is temporary and gives a chance for builders to catch up on inventory and houses that are already being built. The loss of inventory from resales is an attempt to control the rent rates. Multiple investors buying up 40% of the inventory.