Redfin Reports Homes Sales Fell to One of the Lowest Levels on Record in May
The median
“Buyers today are facing many of the realities of a hot market even though few homes are changing hands,” said Redfin Senior Economist
Sales may pick up later this year if mortgage rates slowly tick down as expected.
|
|
Month-over-month change |
Year-over-year change |
Median sale price |
|
1.6% |
5.1% |
Homes sold, seasonally adjusted |
407,959 |
-1.7% |
-2.9% |
New listings, seasonally adjusted |
527,785 |
0.3% |
8.8% |
All homes for sale, seasonally adjusted (active listings) |
1,634,420 |
0.4% |
11.1% |
Months of supply |
2.3 |
-0.1 |
0.4 |
Median days on market |
32 |
-3 |
0 |
Share of for-sale homes with a price drop |
19.2% |
2.4 ppts |
6 ppts |
Share of homes sold above final list price |
35.0% |
1.4 ppts |
-2.4 ppts |
Average sale-to-final-list-price ratio |
99.9% |
0.2 ppts |
-0.1 ppts |
Average 30-year fixed mortgage rate |
7.06% |
0.07 ppts |
0.63 ppts |
Note: Data is subject to revision |
The median home sale price rose 5.1% year over year in May to a record
Even though homes are selling for more than ever before, many sellers are still having to lower their list prices after putting their homes on the market—one silver lining for buyers.
Nearly One of
Nearly one in five (19.2%) homes for sale in May had a price cut, up from 13.2% a year earlier and just shy of the 21.7% record high set in
Some sellers are reducing their prices because they listed their home for too much initially and it ended up sitting on the market. The typical home for sale in May spent 32 days on the market. While that’s comparable with a year earlier, it’s the highest level for any May since the start of the pandemic.
Price drops are particularly common in areas where housing supply has been rising quickly, like
The Housing Shortage Is Improving, But Remains Severe
New listings rose 0.3% month over month in May on a seasonally adjusted basis and climbed 8.8% from a year earlier. Still, they were roughly 20% below pre-pandemic (
Active listings, or the total number of homes for sale, rose 0.4% month over month on a seasonally adjusted basis and jumped 11.1% from a year earlier—the largest annual gain since the start of 2023. Still, active listings were about 25% below pre-pandemic levels.
While new listings represent the number of homes that were listed for sale during a given month, active listings represent the total number of homes that were for sale during a given month. That means that the latter metric includes homes that aren’t selling. One reason active listings have risen so much is that in some areas, homes are lingering on the market and getting stale.
Active listings are also soaring along Florida’s southwest
Meanwhile, many of the markets that are holding up best and seeing price increases—like
Metro-Level Highlights:
-
Prices: Median sale prices rose most from a year earlier in
Anaheim, CA (17.6%)Cleveland (15.1%) andNassau County, NY (14.2%). They fell most inCape Coral, FL (-2.7%),Honolulu (-2.1%) andAustin, TX (-1.1%). -
Price cuts: In
Indianapolis , 48.1% of listings had a price drop—a higher share than any other metro Redfin analyzed. Next cameTampa, FL (45.2%) andDenver (44.8%). The lowest shares were inNewark, NJ (13.4%),Lake County, IL (15%) andMilwaukee (15.2%).
Note: Three of the 10 metros with the highest shares of price drops are inFlorida and three are inTexas . -
New listings: New listings rose most in
San Jose, CA (32.7%),Seattle (31.2%) andDenver (31.1%). They fell most inAtlanta (-7.7%),New Orleans (-4.4%) andGreensboro, NC (-4.3%). -
Active listings: Active listings rose most in
North Port, FL (51.1%),Tampa (46%) andCape Coral (45.1%). They fell most inNew Brunswick, NJ (-8.1%),Chicago (-7.3%) andRaleigh, NC (-5.5%). -
Closed home sales: Home sales rose most in
San Jose (16.6%),Minneapolis (11.7%) andSan Francisco (10.5%). They fell most inStockton, CA (-15.4%),Buffalo, NY (-15.3%) andSan Antonio (-14.3%). -
Sold above list price: In
Rochester, NY , 77.1% of homes sold above their final list price, the highest share among the metros Redfin analyzed. Next cameSan Jose (76.1%) andOakland, CA (68.4%). The shares were lowest inNorth Port (5.9%),West Palm Beach, FL (8.1%) andCape Coral (8.6%).
To view the full report, including charts, please visit: https://www.redfin.com/news/home-sales-fall-to-near-record-low
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Source: Redfin