The housing market turned a corner in April as the inventory crunch showed signs of easing, according to a Redfin report. The 9 percent year-over-year decline in homes for sale was the smallest since March 2020 and the first single-digit drop since the start of the pandemic.
Home sales slid 8 percent, the biggest drop since June 2020, which allowed white-hot home-price growth to cool slightly, according to Redfin. The median home-sale price in April rose 16 percent to $424,000, a slowdown from March’s 17 percent gain.
“When market conditions are changing it becomes more difficult for homebuyers and sellers to see eye-to-eye on pricing,” Redfin Deputy Chief Economist Taylor Marr said in a release. “Many sellers are still seeking sky-high prices for their homes even though rising mortgage rates have limited homebuyer budgets. As a result, buyers are backing off, which is causing home sales to fall and the housing shortage to ease. As demand continues to soften, more sellers will likely be forced to drop their prices in order to get offers. The good news is that this should finally bring more balance to the market.”
Median sale prices increased year-over-year in all the largest metro areas Redfin tracks. The largest price increases were in Las Vegas (+29 percent), West Palm Beach, Fla. (+29 percent) and Fort Worth, Texas (+28 percent).
Home sales fell year-over-year in 87 of the 88 metro areas Redfin tracks. The biggest declines were in West Palm Beach, Fla. (-30 percent), Anaheim, Calif. (-26 percent) and Bridgeport, Conn. (-25 percent). The only metro where sales increased was Allentown, Pa. (+1 percent).
The biggest year-over-year declines in the number of seasonally adjusted active listings of homes for sale were in Allentown, Pa. (-50 percent), Greensboro, N.C. (-40 percent) and Bridgeport, Conn. (-35 percent). The metro areas with the largest increases were Elgin, Ill. (+33 percent), Chicago (+15 percent) and Detroit (+10 percent).
New listings in April fell year-over-year 78 of the 88 largest metro areas. The largest declines were in Allentown, Pa. (-58 percent), Greensboro, N.C. (-45 percent) and Lake County, Ill. (-29 percent). New listings rose the most in McAllen, Texas (+13 percent), Oklahoma City (+6 percent) and Detroit (+4 percent).
Denver and Indianapolis were the fastest selling markets, with half of all homes pending sale in just four days. Next came Omaha, Neb., Oklahoma City and Portland, Ore., each with five days on market.
The most competitive market in April was San Jose, Calif., where 88.5 percent of homes sold above list price, followed by 87.7 percent in Oakland, Calif., 78.7 percent in Denver, 77.8 percent in San Francisco, and 75.6 percent in Oxnard, Calif.
Las Vegas had the nation’s highest price growth, rising 29 percent since last year to $445,000. West Palm Beach, Fla., was next with 28.6 percent year-over-year price growth, followed by Fort Worth, Texas (28.3 percent), Tampa, Fla. (27.6 percent), and Nashville, Tenn. (26.9 percent).
Elgin, Ill., had the highest increase in the number of homes for sale in April, up 32.6 percent year-over-year, followed by Chicago (15.3 percent) and Detroit (9.9 percent). Allentown, Pa., had the largest year-over-year decrease in overall active listings, falling 49.9 percent, followed by Greensboro, N.C. (-39.9 percent), Bridgeport, Conn. (-35.2 percent), and Fort Lauderdale, Fla. (-32.4 percent).