There has been an increase in home listings during recent weeks as sellers jump to cash in on the current high home prices.
“Rising mortgage rates have caused the housing market to shift, and now home sellers are in a hurry to find a buyer before demand weakens further,” according to Redfin Chief Economist Daryl Fairweather.
“Not only are more homes hitting the market each week, but sellers are dropping their prices at rates not seen since before the pandemic.” In the previous four weeks, 17.8 percent of homes dropped their price, the highest share since October 2020.
In addition to high interest rates, home prices remain elevated, thus dampening buyer demand. For the four-week period ending May 15, the median home sale price was a record $398,500, up 16 percent year-over-year, Redfin said.
The median asking price of newly listed homes rose 18 percent year-over-year to $416,425, which is a new all-time high.
“We used to get 10 to 15 offers on most houses,” Lindsay Katz, a real estate broker at Redfin in the Los Angeles area, told CNBC. “Now I’m seeing between two and six offers on a house, a good house.”
As customers turn cold on the housing market, the supply of homes for sale is building up, jumping by 9 percent in the week ending May 22 compared to a year ago, according to the real estate listing website Realtor.com. This is the biggest yearly gain the company has recorded since 2017.