{"id":749907,"date":"2023-04-20T17:49:30","date_gmt":"2023-04-20T21:49:30","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-home-prices-drop-3-but-monthly-housing-payments-hit-record-high-as-mortgage-rates-tick-up\/"},"modified":"2023-04-20T17:49:30","modified_gmt":"2023-04-20T21:49:30","slug":"redfin-reports-home-prices-drop-3-but-monthly-housing-payments-hit-record-high-as-mortgage-rates-tick-up","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-home-prices-drop-3-but-monthly-housing-payments-hit-record-high-as-mortgage-rates-tick-up\/","title":{"rendered":"Redfin Reports Home Prices Drop 3%, But Monthly Housing Payments Hit Record High As Mortgage Rates Tick Up"},"content":{"rendered":"

<\/p>\n

Redfin Reports Home Prices Drop 3%, But Monthly Housing Payments Hit Record High As Mortgage Rates Tick Up<\/b><\/p>\n

Despite high housing costs and a limited supply of homes for sale, many people are out house hunting<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\n(NASDAQ: RDFN) \u2014 The typical U.S. homebuyer\u2019s monthly housing payment hit an all-time high of $2,538 as average weekly mortgage rates rose to 6.39% after five consecutive weeks of declines, according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage. The new high comes in spite of the median home-sale price dropping 2.6% from a year earlier during the four weeks ending April 16, the biggest decline in over a decade.<\/p>\n

\nElevated housing costs are one reason would-be homebuyers are backing off: Pending home sales are down 19% from a year ago, the biggest drop in nearly three months, and mortgage-purchase applications declined 10% over the last week. Buyers are also limited by the shortage of homes for sale, with new listings down 21% as homeowners stay put to hang onto comparatively low mortgage rates.<\/p>\n

\nBut while fewer people are buying homes, many are searching. Redfin\u2019s Homebuyer Demand Index\u2014a measure of requests to tour homes, make an offer or start a home search\u2014rose 3% from a week earlier and 12% from a month earlier during the week ending April 16. The demand index was down 7% from a year ago, but that\u2019s the smallest decline in eleven months.<\/p>\n

\n\u201cHomebuyers are window shopping and many are entering the store, but few of them are making it to the cash register yet,\u201d said Redfin Deputy Chief Economist Taylor Marr. \u201cThere\u2019s not much on the shelves to choose from, and high mortgage rates and still-high prices are making homes too expensive for many buyers. Some buyers are discouraged by mortgage rates rising this week, which is partly due to stronger-than-expected bank earnings making it more likely the Fed will hike interest rates next month.\u201d<\/p>\n

\nThe market looks different in different parts of the country. Los Angeles Redfin agent Costanza Genoese Zerbi said that while few homeowners are moving, locked in by low rates, first-time buyers are on the hunt. There\u2019s enough demand and such limited supply that all her recent listings received multiple offers.<\/p>\n

\n\u201cI listed a three-bedroom home that needed work in a desirable part of Long Beach. It was listed at $1.3 million, got 17 offers and sold for $1.5 million,\u201d she said. \u201cMy advice for today\u2019s buyers is to look for a home you love, not an investment. Mortgage rates are high and prices are still high, so you may not earn equity as quickly as you would have if you\u2019d purchased a home two years ago. But if you\u2019re buying your dream home in a place you want to live, it\u2019s worth it.\u201d<\/p>\n

\nIn Washington, D.C., some homeowners are taking advantage of limited supply and the uptick in competition. \u201cMany sellers are sitting on a ton of equity. Maybe they bought their home 10 years ago and it\u2019s gone up in value by hundreds of thousands of dollars,\u201d said local Redfin agent Marshall Carey. \u201cEven with high rates, it\u2019s a good time to move up because they have so much money in the bank to get a nicer home in a better location.\u201d<\/p>\n

Home Prices Falling in More Than Half of the U.S.<\/b><\/p>\n

\nThe median U.S. home-sale price fell for the eighth straight four-week period after more than a decade of increases.<\/p>\n

\nHome-sale prices declined in 30 of the 50 most populous U.S. metros, with the biggest drop in Austin, TX (-15.1% YoY). It\u2019s followed by Oakland, CA (-11.5%), Sacramento, CA (-9.5%), San Francisco (-9.2%) and Seattle (-9.1%).<\/p>\n

\nOn the other end of the spectrum, sale prices increased most in Fort Lauderdale, FL, where they rose 9.1% year over year. Next comes Cincinnati (9%), Miami (8.5%), West Palm Beach, FL (8%) and Milwaukee (7.2%).<\/p>\n

Leading indicators of homebuying activity:<\/b><\/p>\n