Competition on home offers fell to 60.7% nationwide in April, down from 63.4% a month earlier and 67.4 % a year earlier, as high rates and house prices kept more buyers out of the market, according to a new report by Redfin.

The percentage is the lowest level since March 2021 and marks the second consecutive monthly decline.

The housing market has slowed recently with mortgage rates at their highest level in more than a decade and the typical monthly mortgage payment for homebuyers up a record 44% year over year to an all-time high of $2,427, according to Redfin. And U.S. home values continue to grow at a record pace, up 20.9% in the past year, according to Zillow.

Riverside, Calif. saw the biggest competitive decline, with 42.7% of home offers written by Redfin agents facing competition in April, down from 64.6% a year earlier. That 22-percentage-point decline was the largest among the 36 U.S. metropolitan areas in Redfin’s analysis. Atlanta was next, down to 56% from 71.2% a year ago; and Olympia, Wash. coming in third, with 70% vs. 85.1% last year. 

However, Zillow’s latest Real Estate Market Report suggests that homes are selling as fast as they ever have, with the typical home being snapped up after only seven days, and nearly half of homes are still selling for above their list price.

Zillow economists say that buyer demand has been strong enough to keep the market moving at a record pace, even after the massive spike in mortgage rates. But they do expect the market to begin rebalancing this spring, as rising costs keep enough would-be buyers out of the market long enough for inventory to begin catching up with demand.

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