Demand for homes is starting to taper off, and with more sellers coming to the market in recent weeks, this shift could be a positive sign for the buyers who remain, according to a new report from Redfin

More sellers came to the market during the four weeks ending May 15, the report showed, and new listings climbed nearly twice as fast as they did at this time last year. The share of listings with a price drop rose to its highest level in two and a half years.

But homebuyers are hitting the brakes—mortgage purchase applications fell to their lowest level since May 2020, and the number of homebuyers touring and offering on homes posted its largest annual decline since April 2020, according to the Redfin Homebuyer Demand Index. 

Fewer people searched for “homes for sale” on Google, with searches during the week ending May 14 down 11% from a year earlier. 

“Desirable” homes are still getting snapped up at a record pace, spending about 15 days on the market, the report showed.

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