A report released Thursday redfin tuna It shows 6.4% of U.S. home sellers lowered their asking prices in the four weeks ending May 26.
Nationwide real estate brokerages reported that the median asking price over the past week was $416,623, down about $3,000 on a weekly basis and marking the first pullback in six months.
Homes are also spending longer and longer on the market. The typical median number of days a home remained unsold reached 46 days in May, marking the first annual increase in eight months. Combined with the decline in asking prices, Redfern said, “sales prices are likely to soften in the coming months as continued high mortgage rates deter homebuyers.”
Mortgage rates have fallen in recent weeks. according to house lineThe average 30-year conventional fixed rate was 7.25% Thursday, down from 7.30% a week ago, according to the Mortgage Rate Center. The 30-year regular rate reached this year’s peak of 7.58% on May 1.
The sales price hit another record high, rising 4.3% from the same period last year to $390,613. Redfin notes, “Sales prices are a lagging indicator because they are typically negotiated at least a month before closing.”
Redfin’s price cut numbers line up with data released this week altos research corp.The survey found that 34.8% of all houses currently on the market have had their prices reduced. The ratio increased 40 basis points from the previous week and 450 basis points from the same period last year.
“By July, more than 40% of the homes on the market are likely to see price reductions. This would be a bearish indicator of future sales prices.
Redfin noted that the median monthly mortgage payment fell to $2,812 in the four weeks ended May 26, as higher sales prices were offset by lower interest rates. The median payment reached its lowest level in six weeks, but was still 7.3% higher on an annualized basis. Payment amounts are based on the average mortgage interest rate of 6.94%.
While the monthly cost of owning a home is falling, purchase-to-buy mortgage applications remain near a six-month low. Mortgage demand, measured by purchase and refinancing applications, fell 5.7% annually in the week ended May 24.
Christine Chang, an agent at Redfin Premier in the San Francisco Bay Area, noted in a report that although sales activity was slower than usual, homes in her market in good condition and listed under $1 million were still receiving multiple offers.
“People who buy now usually do so because they are having children or looking for a home more suitable for their family,” Zhang said. “My advice to these buyers is to keep an open mind: Consider single-family homes that are a bit dated but don’t require major renovations, and/or homes in less well-known, non-fashionable neighborhoods.
“This type of home tends to stay on the market longer, and buyers may be able to avoid competition and purchase the home at the asking price rather than engaging in a bidding war. Buyers who can live with a smaller space should consider a condo; They are relatively unpopular at the moment, with many selling for less than asking price.
