New listings of homes for sale rose 6.3 percent year-over-year during the four weeks ending June 1, one of the smallest increases of the last three months. That’s according to a new report from Redfin.
New listings declined year-over-year in 11 of the 50 most populous metros, with the biggest drops in San Jose, Calif. and four Florida metros: Orlando, Fort Lauderdale, Tampa and West Palm Beach.
New listings fell during the second half of May. While it’s typical for listings to decline after peaking in mid-May, this year’s drop was the biggest for that time period in a decade, according to Redfin.
On the buying side, pending home sales declined 0.4 percent year-over-year to their lowest May level since 2020, and mortgage-purchase applications fell 3 percent week-over-week, Redfin reported. Prospective buyers are backing off because housing costs are near record highs, with the median home-sale price up 1.2 percent year-over-year and the weekly average mortgage rate approaching 7 percent, and because the economy is unpredictable, Redfin said.
While there are hundreds of thousands more homesellers than buyers in the market — and new listings are still rising — the recent decline in listings suggests some of this spring’s would-be sellers are backing off. The typical home now sells for about 1 percent less than its asking price, the biggest discount for this time of year since 2020, and about 28 percent of homes sell for above their asking price, down from 32 percent at this time last year.
“If a home is in a desirable neighborhood, especially if it’s fixed up, it will sell fairly quickly,” Milwaukee-based Redfin Premier agent Ben Ambroch said in a release. “But even that type of home now gets two or three offers, as opposed to the 10 offers it would have gotten a few years ago. Sellers of homes that need work in fringe neighborhoods should be able to find a buyer, but it’s important they come to the table with realistic expectations on price and timing, and a willingness to negotiate. Price within a fair range based on the neighborhood, understand that buyers will be inspecting the home, and be prepared to give concessions.”