THIS is Becoming a HUGE Problem for the US Housing Market
Table of Contents
Redfin report shows new listings fell 25% from a year ago
The eighth consecutive month of double-digit decreases. There is also a lack of contracts due to buyers and sellers being hesitant.
Mortgage Rates
Freddie Mac’s weekly survey reports rates at 6.27%. Average 30-year fixed for people with great credit is 6.50%, an increase of 1.35 percentage points compared to one year ago.
Mortgage Loans
About half of all homeowners with a first loan have a rate at or below 3.5%.
Property Sales
California home sales fell 19% from a year ago, which was the biggest decrease since January. Sacramento County is experiencing on average three offers for each home for sale.
New Listings
New listings in Sacramento and Oakland are down by 47% from a year ago. San Francisco has seen a decrease of 43.2%, San Jose a decrease of 42.9%, and San Diego a decrease of 41.4%.
Home Prices
Nationwide home prices have increased six percent over the past two months. Median sold price decreased by 2.3% year over year to roughly $364,000 in Sacramento County and roughly $344,000 in San Francisco.
Housing Market Updates
Prices fell in some areas where they rose in other markets making it challenging to report the latest housing market updates. The most significant increase was a gain by 7.4% in Milwaukee, whereas Austin had the biggest decrease of 13.3%.
Housing Market Experiences Decrease in Sales and Prices
The median home sold price is $364,000, down 2.3% from last year.
Pending home sales were down 18.8% YoY; the biggest decrease in over two months.
Las Vegas experienced the largest decrease at 45.7%, followed by San Jose at 43% and Seattle at 42.9%.
Decrease is likely due to Easter and Spring Break activities.
The total number of houses for sale or housing inventory posted an unseasonal early spring decrease.
The monthly supply for this year peaked in early February at 4.5 months but has been decreasing since then.
Days in the market are at 37 days, taking 15 days longer to sell a house compared to one year ago.
The ratio of average sale price to final sale price is about 99, meaning houses are selling for about 1% below asking price.
Despite the decrease in sales and prices, the housing market is still trending higher than in previous years.