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Rising Supply Draws in Some Buyers, Even as Housing Payments Soar 10% to All-Time High

Redfin reports there are more homes for buyers to choose from, with new listings posting their biggest uptick in nearly three years

SEATTLE, March 28, 2024--(BUSINESS WIRE)--(NASDAQ: RDFN) —The typical U.S. monthly housing payment hit an all-time high of $2,721 during the four weeks ending March 24, up 10% from a year earlier, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Housing payments are at a record high because of the one-two punch of elevated mortgage rates and rising home prices. Mortgage rates remain elevated near 7%, and the median home-sale price is up 5% year over year to roughly $375,000, just about $9,000 shy of June 2023’s record high.

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Many sellers are trying to take advantage of rising prices by listing their home. New listings are up 15%, the biggest increase in nearly three years, and the total number of homes for sale is up 6%, the biggest increase in nearly one year.

Increased supply is bringing back some demand, which is the main reason price growth remains robust. Mortgage-purchase applications are up 14% from a month ago, and pending home sales are just 1% lower than they were a year ago, the smallest decline since the beginning of the year.

"High mortgage rates aren’t deterring buyers as much as they were last year; a lot of people want to get in now before prices go up more," said Miami Redfin agent Rachel Riva. "All of my recent listings have gone under contract in under 10 days, and most of them have received multiple offers. Buyers are lessening the impact of elevated rates in a few ways: Some are making high down payments to lower their monthly payments, and some are willing to take on a high rate now in hopes of refinancing when and if rates come down."

There are a few signs that price growth could soften a bit in the coming months. Nearly 6% of home sellers dropped their asking price this week, on average, the highest share of any March on record. Months of supply hit its highest level of any March since 2020–when the onset of the pandemic ground the housing market to a halt–indicating that the market is becoming more balanced.

Leading indicators

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

6.91% (March 27)

Down from 7.11% a week earlier

Up from 6.44%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

6.87% (week ending March 21)

Up from 6.74% a week earlier

Up from 6.42%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Essentially unchanged from a week earlier; up 14% from a month earlier (as of week ending March 22)

Down 16%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Up 2% from a month earlier (as of week ending March 24)

Down 8%

Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents

Google searches for "home for sale"

 

Up 6% from a month earlier (as of March 25)

Down 5%

Google Trends

Touring activity

 

Up 28% from the start of the year (as of March 25)

At this time last year, it was up 21% from the start of 2023

ShowingTime, a home touring technology company

Key housing-market data

U.S. highlights: Four weeks ending March 24, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending March 24, 2024

Year-over-year change

Notes

Median sale price

$374,500

4.6%

 

Median asking price

$405,451

5.1%

 

Median monthly mortgage payment

$2,721 at a 6.87% mortgage rate

9.8%

Record high

Pending sales

85,048

-1.1%

Smallest decline in over 2 months

New listings

92,087

14.8%

Biggest increase since June 2021

Active listings

807,227

6.3%

Biggest increase since May 2023

Months of supply

3.3 months

+0.4 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

42.3%

Essentially unchanged

 

Median days on market

40

-2 days

 

Share of homes sold above list price

26.8%

Up from 26%

 

Share of homes with a price drop

5.8%

+1.6 pts.

 

Average sale-to-list price ratio

98.8%

+0.2 pts.

 

Metro-level highlights: Four weeks ending March 24, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

West Palm B

each, FL (20.7%)

San Jose, CA (17.6%)

Miami (16.1%)

Detroit (15%)

New Brunswick, NJ (14.5%)

San Antonio, TX (-0.3%)

 

 

 

Declined in just 1 metro

Pending sales

San Jose, CA (25.1%)

San Francisco (20.1%)

Cincinnati (11.6%)

Anaheim, CA (9.9%)

Seattle (8.2%)

Atlanta (-15.4%)

Houston (-13%)

San Antonio, TX (-12.7%)

West Palm Beach, FL (-12.5%)

Miami (-10.7%)

Increased in roughly half of the metros

New listings

San Jose, CA (41.8%)

Sacramento, CA (38%)

Phoenix (31.7%)

Las Vegas (27.3%)

Austin, TX (26%)

 

Atlanta (-6.6%)

Chicago (-2.9%)

Declined in just 2 metros

To view the full report, including charts, please visit:

https://www.redfin.com/news/housing-market-update-housing-costs-inventory-increase

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240328774631/en/

Contacts

Redfin Journalist Services:
Kenneth Applewhaite, 206-414-8880
press@redfin.com