September 17, 2021

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Mortgage News

Redfin Reports Homebuying Conditions Improve Slightly as Mortgage Rates Decline

SEATTLE, August 6, 2021 / PRNewswire / – (NASDAQ: RDFN) – At $ 362,750, for the first time since early March, the median home sales price hasn’t hit a new record high, so a new one report by Redfin (redfin.com), the technology-based real estate brokerage. Instead, it has remained unchanged (-0.2%) since the end of the four-week period July 25th and 18% more than a year earlier.

Redfin logo (PRNewsfoto / Redfin)

Important findings from the housing market for more than 400 US metropolises:
Unless otherwise stated, this includes data the four-week period ends August 1st. Redfin real estate market data dates back to 2012.

  • The average home purchase price rose 18% year over year $ 362,750, but down 0.2% from the end of the four-week period July 25th. This ends a five-month series of record-breaking property prices.
  • The asking prices for newly listed homes rose by 12% to a median of $ 358,475, but 1% less than its all-time high that ended during the four weeks June 27th.
  • Pending home sales rose 3%, the smallest year-on-year increase since the end of the four-week period June 28, 2020. They were down 3% from the end of four weeks July 25th and 12% less than its high in 2021 during the four-week period that ends 30th May.
  • New offers of homes for sale fell slightly by -0.2% year-on-year, the first decline since March. The number of listed houses increased by 1.9% compared to the end of the four weeks July 25th, a similar trend over the past two years at this time.
  • Active listings (the number of homes available for sale at any point during the period) decreased 26% from the same period in 2020 – the smallest decrease since the end of the four-week period December 27, 2020. Active offers increased 13% over the four-week period from their 2021 low 7th March.
  • 49.7% of the apartments under contract had an accepted offer on the market within the first two weeks, significantly more than 44% in the same period of the previous year. The rate has stabilized since the end of the four weeks July 11thbut this was the first time it fell below 50% since the end of the four week period February 7th.
  • 36% of the apartments under contract received an accepted offer within a week of market launch, compared to 31.6% in the same period of the previous year. This rate has also stabilized since the end of the four weeks July 11th.
  • Homes that were sold were on the market for a median of 16 days – 20 days faster than a year ago and flat since the end of the four weeks July 25th.
  • 54% of the apartments were sold above the list price, compared to 30% in the previous year. This measurement is stable and has been 54-55% since the end of the four week period June 27th.
  • The share of apartments for sale with price declines was 4.7%, just below the level of 2019 (4.9%), above the previous year’s figure of 3.7%.
  • The average sale-to-list price ratio, which measures how close homes are being sold to their asking prices, fell to 102.1% – still just slightly below the peak of 102.3% over the past four weeks 4th of July. In other words, the average home sold for 2.1% above asking price. This measure was 3.1 percentage points higher than a year earlier.

Other other leading indicators of home buying activity:

  • Mortgage purchase requests during the past week 30th July fell from week to week by 1.7% (seasonally adjusted) to its lowest level since May 2020. For the weekend 5th of August, 30-year mortgage rates fell to 2.77%, their lowest level since mid-February.
  • Out January 1st to August 3rd, Home tours increased 14%, according to tech company ShowingTime, compared to a 39% year-over-year increase.
  • The seasonally adjusted Redfin Homebuyer Demand Index – a measure of requests for home tours and other services from Redfin agents – rose 8% month on month.

Trends in home prices, sales, and new offers are starting to resemble the patterns Redfin normally expects for this time of year, which is news after a year of unpredictable and insatiable demand for homes. Competition and the pace of home sales persist – with 54% of homes selling above listing and about half under contract within two weeks – as pending sales decline and new listings rise. Mortgage rates are back below 2.8%, a level Redfin has not seen since winter. If these trends continue, home buying conditions will likely improve (compared to earlier this summer), with more options and less competition for homebuyers.

“Although homes are much more expensive than they were before the pandemic, home buyers now benefit from very low mortgage rates and slightly less competition than they did earlier in the summer,” said Redfin chief economist Daryl good weather. “This week, an offer from a young first-time buyer was accepted with an FHA loan on a nearby home Myrtle Beach, SCafter losing in five bidding wars. I am confident that there will be more opportunities of this nature in the coming weeks as the situation stabilizes. “

To view the full report, including charts and methodology, please visit:

https://www.redfin.com/news/housing-market-update-buying-conditions-improve/

About Redfin
Red fins (www.redfin.com) is a technology-driven real estate company. We help people find a home through brokerage, home buying (iBuying), rentals, lending, property insurance, and renovation services. We sell houses for more money and we charge half the fee. We also run those in the country #1 Real estate brokerage site. Our home buyers see homes first on on-demand tours, and our credit and property services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our home renovation team fix their home to sell it for the highest dollar. Our rental business enables millions of people across the country to find apartments and houses for rent. Since our introduction in 2006, we have had more than $ 1 billion at commissions. We serve more than 100 markets in the US and Canada and employ over 6,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn more about housing market trends and download data, visit Redfin data center. To be added to Redfin ‘s press release distribution list, email at [email protected]. To view the Redfin press center, click here.

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SOURCE Redfin