A total of $698 billion worth of US homes are listed for sale as of April, according to new data from Redfin (NASDAQ: RDFN). This marks a 20.3% increase from one year ago and the highest dollar amount recorded since Redfin began tracking this data in 2012.
This new record was achieved as the US housing supply soared 16.7% year-over-year to a five-year high while new listings increased 8.6% to a three-year high. But buyers aren’t rushing out to purchase this wider selection – the typical home that sold in April took 40 days to go under contract, five days longer than a year earlier and more than two in five (44%) listings in April had been on the market for at least 60 days without going under contract. And most sellers are not cutting their prices – the median home sale price rose 1.4% year-over-year in April.
“The record-high dollar value of all homes listed for sale is one way to quantify this buyer’s market,” said Chen Zhao, Redfin’s head of economics research. “Not only are there more homes for sale than there have been in five years, but the value of those homes is higher than it has ever been. We expect rising inventory, weakened demand, and the prevalence of stale supply to push home prices down 1% by the end of this year, which should improve affordability for buyers because incomes are still going up.”
That’s exactly the problem. The sellers still think it’s a sellers market. The buyers are waiting for them to become realistic. Plus interest rates. Never mind, We are way past due for a correction.
Agreed
Where is the quality of houses being built today? Prices of property today has skyrocketed. Sheet rock on studs and quality of materials has been cheaply produced. What is called stucco over Styrofoam is not withstanding the test of time. My house was built in 1932 during the depression and
stucco was used over wire lathe and 1″ copper pipe for plumbing, and I have not experienced any problems since I purchased the house in 1992. I inform my clients to look at property that was built prior to 1971 and these properties are well constructed and can
be purchased at a better price and with remodeling can provide them with a solid construction and save money by going this direction.