Sellers drop prices as buyers continue to find little relief: Massachusetts Homebuyers Homeownership

 More sellers are dropping their asking prices, but buyers are finding little relief, according to a new Redfin study.
The share of homeowners dropping asking prices rose to a six-month high of fifteen percent for the four weeks ended May 1, up from nine percent last year, representing Redfin’s largest recorded annual gain. During that same time period, monthly mortgage payments rose forty two percent, a new high. And even though more sellers are lowering prices, they are still outnumbered by buyers who continue to fight through low inventory to find a home.

 The report found home sales are still incredibly brisk despite selling above asking at the fastest pace on record, squeezing homebuyers and causing some to take a step back from the market, according to Redfin chief economist Daryl Fairweather. “Unfortunately for buyers hoping to find a deal as competition cools, sellers are pulling back even faster, which is keeping the market deep in seller’s territory,” Fairweather said. “So even though price drops are becoming more common, most homes are still selling above asking price and in record time.”

 Redfin found fewer Google searches for “homes for sale” during the week ended April 30, down seven percent from last year. Its Homebuyer Demand Index, which measures requests for tours and other services, fell one percent year over year during the week ended May 1 and dropped ten percent in the past four weeks. A year earlier, that decrease was just one percent. Additionally, mortgage applications fell eleven percent from last year as the thirty year mortgage rate rose to 5.27 percent for the week ended May 5, the highest since August 2009.

 In the four weeks ended May 1, active listings fell eighteen percent year over year. The median asking price rose sixteen percent from 2021 to a new all-time high of four hundred eight thousand four hundred and fifty eight dollars. Meanwhile, the median sale price increased seventeen percent year over year to three hundred seventy nine thousand two hundred and thirty dollars, the largest increase since August, to a record three hundred ninety six thousand one hundred and twenty five dollars. A record fifty six percent of homes sold above list price, up from forty seven percent last year. The report also noted the monthly mortgage payment on a median asking-price home rose 5.27 percent to a record high of two thousand four hundred and four dollars, up forty two percent from one thousand six hundred and eighty eight dollars last year when rates were 2.96 percent.

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