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The median U.S. home sale price increased 6.2% year over year in April to $433.6K—the highest level on record, according to a new report from Redfin.
“Today’s housing market is much slower than it was during the pandemic homebuying boom, but prices continue climbing because there still aren’t enough homes to go around,” the report said.
New listings increased 1.7% month over month in April on a seasonally adjusted basis and rose 10.8% year over year, but were ~20% below pre-pandemic levels, as several homeowners are not looking to sell.
Home sales in April were down 1.4% from a year earlier.
“It’s not all bad news for homebuyers. Mortgage rates are already inching lower in response to this week’s inflation report, which signaled that the Fed may cut interest rates this summer—a possibility that just weeks ago many thought was off the table,” Redfin Economics Research Lead, Chen Zhao said.
Mortgage rates fell for the second consecutive week as a softer-than-expected retail inflation report made way for the 10-year Treasury yield to dip, a Freddie Mac Primary Mortgage Survey reported on Thursday.
Active listings rose to the highest level since December 2020 in April, but stayed far below pre-pandemic levels.
The report also suggested that 18% of home sellers are cutting the asking prices.
“Most sellers in Las Vegas are willing to negotiate—anywhere from 5% to 10% off their list price,” local Redfin Premier real estate agent Fernanda Kriese said.
