The median asking price of newly-listed homes for sale is down 1.5% from the spring high, as a record-high share of sellers dropped their asking price during the four-week period ending June 26, according to a new report by Redfin

Sellers are “ceding to the mounting pressure on affordability posed by this month’s rapid mortgage-rate hike,” Redfin’s analysis said.

Pending sales continued to fall in their largest decline since May 2020, but there are signs that early-stage homebuyer demand is starting to level off. 

“Data on home-tours, offers and mortgage purchase applications suggest that homebuyers have noticed the shift in power and are no longer leaving the market in droves,” said Redfin chief economist Daryl Fairweather. “Buyers coming back will provide support to the housing market, but between now and the end of year I think the power will continue to shift towards buyers, resulting in mild price declines from month to month.”

For the week ending June 30, 30-year mortgage rates fell slightly to 5.7%, while fewer people searched for “homes for sale” on Google—searches during the week ending June 25 were down 7% from a year earlier.

The seasonally-adjusted Redfin Homebuyer Demand Index was down 15% year over year during the week ending June 26, but up 7 points from the previous week. And touring activity as of June 26 fell 3% from the start of the year, compared to a 24% increase at this time last year, according to home tour technology company ShowingTime. 

For the the four-week period ending June 26, the median home sale price was up 14% year over year to a record $399,249. Pending home sales were down 13% year over year, the largest decline since May 2020. New listings of homes for sale were down 7% from a year earlier. Active listings (the number of homes listed for sale at any point during the period) fell 8% year over year—the smallest decline since March 2020, according to the report. 

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