Despite fewer sales, it’s a seller’s market in parts of the U.S. MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 It’s a hot seller’s market in much of the country, despite few sales, as homebuyer demand is outpacing supply nationally. Even though sales are down by double digits, limited new listings are making it feel like a seller’s market in parts of the country, according to a new Redfin report. The report found even though elevated mortgage rates continue to dampen demand, low inventory has homes selling fast in parts of the country. New listings continue to be in short supply. During the four weeks ended April 2, 2023 new listings fell twenty one point eight percent from last year one of the biggest drops since the start of the pandemic, marking an “unseasonal early-spring decline in the total number of homes for sale,” according to the report.

 And with many homeowners choosing to stay put because they don’t want to give up their low mortgage rate, buyers are acting fast on homes as they hit the market. That quick action has nearly half of all homes on the market going under contract within two weeks, up about twenty five percent from January. “It would take 2.8 months for today’s supply of for-sale homes to sell at homebuyers’ current consumption rate, the shortest time since September,” the report said. Despite quickened sales, pending home sales are still down, falling nineteen percent year over year. Redfin deputy chief economist Taylor Marr says elevated mortgage rates are perhaps an even bigger deterrent for would-be sellers than for would-be buyers.

 “Giving up a three percent mortgage rate for one in the six percent range is a tough pill to swallow,” said Marr. “Today’s serious homebuyers have grown accustomed to the idea of a five or six percent rate and have adjusted their budgets accordingly. The lack of homes hitting the market explains why the market is moving fast even though sales are still down. The lack of new listings is also one reason why sales are down: Buyers can’t buy if sellers don’t want to sell.” Thirty-year mortgage rates fell to six point twenty eight percent for the week ending April 6, 2023 the fourth week in a row of declines. The daily average was six point eighteen percent on April 6. Mortgage applications declined four percent during the week ended March 31,2023 and purchase applications rose eight percent from the prior month but were down thirty five percent from a year earlier.

 The lower rate brought the average monthly mortgage payment on a median-priced home to $2,508, down slightly from March’s peak, but up fifteen percent from a year ago. There’s no doubt homebuyer demand is on the rise. During the week ended April 6, 2023 Redfin found Google searches for “homes for sale” were up forty four percent from their December low but down twenty percent from last year. In the four weeks ended April 2, active listings rose twelve point three percent from last year, marking the smallest increase in five months. Meanwhile, new listings fell twenty one point eight percent from last year. The median asking price of a home rose point nine percent from 2022 to $391,851. Meanwhile, the median sale price fell for the seventh week in a row by two point one percent to $361,796.

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