{"id":765367,"date":"2023-06-22T08:03:19","date_gmt":"2023-06-22T12:03:19","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-report-the-spring-2023-homebuying-season-never-happened\/"},"modified":"2023-06-22T08:03:19","modified_gmt":"2023-06-22T12:03:19","slug":"redfin-report-the-spring-2023-homebuying-season-never-happened","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-report-the-spring-2023-homebuying-season-never-happened\/","title":{"rendered":"Redfin Report: The Spring 2023 Homebuying Season Never Happened"},"content":{"rendered":"

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Redfin Report: The Spring 2023 Homebuying Season Never Happened<\/b><\/p>\n

Near-7% mortgage rates are preventing both would-be homebuyers and would-be sellers from entering the market. Construction of new single-family homes is near its highest level in almost two decades, providing some hope for an uptick in inventory by next year.<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\n(NASDAQ: RDFN) \u2014 As spring turns into summer, it\u2019s official: The traditionally hot spring homebuying season didn\u2019t come to fruition in 2023. That\u2019s according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage. This year, instead of the calendar determining the homebuying season, the Federal Reserve is dictating when people buy and sell. And so far, the Fed’s actions are suggesting they wait.<\/p>\n

\nPending home sales fell 16% from a year earlier during the four weeks ending June 18. But even though sales are relatively tepid, Redfin\u2019s Homebuyer Demand Index\u2014a measure of requests for tours and other early-stage buying services from Redfin agents\u2014is up 11% year over year. Additionally, there are more house hunters than there are homes hitting the market. New listings of homes for sale are down 24% from a year ago, and the total number of homes for sale is down 8%, the biggest drop in over a year.<\/p>\n

\nElevated mortgage rates are responsible for the drops on both the demand and supply sides. With average rates sitting above 6% all spring, pushing the typical U.S. monthly housing payment up near record highs, many would-be buyers are sitting on the sidelines, waiting for rates to come down. And the buyers who are out there are having a hard time finding listings, with many prospective sellers staying put, hanging onto their relatively low rates: Nearly all homeowners with a mortgage have a rate below 6%.<\/p>\n

\nThe continuing inventory shortage is bolstering home prices. The median U.S. home-sale price dropped just 1% year over year this week, the smallest decline in more than three months. On a local level, prices have started leveling off: They fell in 25 of the 50 most populous metros, compared with 29 a month ago. In San Jose, CA<\/a>, for instance, the median sale price is up roughly 2% year over year, marking the first increase after eight straight months of declines.<\/p>\n

\n\u201cThere are two things that would jumpstart the housing market: A big drop in mortgage rates and\/or a big surge of new listings,\u201d said Redfin Deputy Chief Economist Taylor Marr. \u201cNeither of those things happened this spring; instead, rates rose and new listings dropped to record lows. And with one or two more interest-rate hikes expected this year, mortgage rates are likely to remain elevated at least through the summer, continuing to limit both demand and supply.\u201d<\/p>\n

\n\u201cBut even though there wasn\u2019t much of a spring homebuying season this year, there was a spring building season,\u201d Marr continued. \u201cThat means there\u2019s hope for more listings somewhat soon, with homebuilders working to fill the inventory bucket. Builders broke ground on more single-family homes in May than almost any month in nearly two decades, which could expand buyers\u2019 options by the end of the year.\u201d<\/p>\n

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