According to Redfin, the housing market is showing minor but significant signs that the balance is swinging back to buyers from sellers. During the week ending May 29th, its seasonally adjusted Homebuyer Demand Index fell 9% year over year. The index, which tracks requests for tours and other home buying services from Redfin agents, fell for the eighth day in a row. One of the critical reasons for customers’ withdrawal from the market is the rise in mortgage rates.
Meanwhile, the number of homes for sale increased to 608,841 in May, a record high for the year. However, this was a 10.1 percent drop from last year, and a minor dip since April 2020, when the pandemic began. Redfin also reports that the median sales price for the four weeks ending May 29 was $400,999, up 16 percent year over year. Newly listed properties had a median asking price of $412,450, up 17 percent. We can add property value increase to another reason for buyer demand falling. Read More