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Redfin: house prices rise slightly as fall in price attracts buyers | News

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The median home sales price in the U.S. rose 0.9 percent from a year earlier to $350,250 during the four weeks ended Jan. 15, the biggest increase in a month, according to a new report from Redfin.

Prices remain high and buyer activity picks up as mortgage rates fall due to slowing inflation. The average mortgage rate fell to 6.15 percent in the week ending January 19, the lowest level since September.

Pending home sales fell 29 percent year-on-year — a significant drop and the first drop of less than 30 percent in three months. Applications for mortgage purchases were up 25 percent from the week for the week ending Jan. 13, a jump likely to lead to more pending sales in the coming months, according to Redfin.

New listings of homes for sale fell 20 percent year-on-year during the four weeks ended Jan. 15, the smallest drop in two months.

“The people who started searching homes online and scheduling home visits in late 2022 are now turning into real homebuyers,” Redfin deputy chief economist Taylor Marr said in a press release. “Low competition, falling mortgage rates and concessions from sellers are driving some buyers back to the market. That helps keep national home prices high, which is a bright spot for sellers. But many buyers are still on the sidelines and demand could fall again if inflation falls slower than expected or if mortgage rates rise again.”

Home prices fell in 18 of the 50 metros

Home sales prices fell year-over-year in 18 of the 50 most populous metropolitan areas during the four weeks ending Jan. 15. month earlier.

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Prices fell 10.1 percent year-on-year in San Francisco, 6.7 percent in San Jose, 5.5 percent in Austin, Texas, 4.3 percent in Detroit, 3.8 percent in Seattle, 3.7 percent in Phoenix, 3.4 percent in Sacramento, California, 3.1 percent. percent in San Diego, 2.8 percent in Anaheim, California, 2.5 percent in Chicago, 2.4 percent in Los Angeles, 2.3 percent in Oakland, California, and 2.2 percent in Boston. They fell less than 2 percent in Riverside, California, Portland, Oregon, New York, Newark, NJ and Las Vegas.

Leading indicators of home buying:

For the week ending Jan. 19, 30-year mortgage rates fell to 6.15 percent. The daily average was 6.04 percent on January 18.

Applications for mortgage purchases during the week ending Jan. 13 were up 25 percent from a week earlier, seasonally adjusted. Purchase orders were 35 percent lower than a year earlier.

Google searches for “homes for sale” were up about 30 percent from their November lows during the week ending Jan. 14, but down about 26 percent from a year earlier.