The housing market’s temperature may be starting to drop by a degree or two, according to a new report from Redfin. Both pending sales and asking prices began to decline or flatten in the four weeks ending May 30. It’s too soon to tell if these are early seasonal changes or the start of a post-pandemic cooldown, the company pointed out.
“The housing market was going 100 miles per hour and now it’s down to 80,” said Redfin chief economist Daryl Fairweather. “This is not the bursting of a bubble. Rather, it’s a sign that consumers might rather spend their time and money on other things besides housing now that travel, dining and entertainment are resuming in full force.”
Key housing market takeaways from the study that looked at more than 400 U.S. metro areas during the 4-week period ending May 30 include:
- Pending home sales fell 3% from the four-week period ending May 2, compared to a 2% increase over the same period in 2019. Compared to 2020, they are up 38%.
- Asking prices fell $2,500 from the four-week period ending May 23 to a median of $354,975, up 11% from the same period in 2020.
- New listings of homes for sale were down 8% from the same period in 2019, and are down 5% from the 2021 high, which was set during the four-week period ending May 2. During the same period in 2019, new listings fell 2%.
- Active listings (the number of homes listed for sale at any point during the period) fell 37% from the same period in 2020.
“There are some signs that buyers may be pulling back,” said Seattle Redfin real estate agent Alysan Long. “Homes are staying on the market past the date the sellers had planned to review offers and other homes are being listed without an offer review date, neither of which was happening earlier this spring.”