{"id":773068,"date":"2023-07-27T11:12:31","date_gmt":"2023-07-27T15:12:31","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-home-prices-are-up-3-year-over-year-biggest-increase-since-november\/"},"modified":"2023-07-27T11:12:31","modified_gmt":"2023-07-27T15:12:31","slug":"redfin-reports-home-prices-are-up-3-year-over-year-biggest-increase-since-november","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-home-prices-are-up-3-year-over-year-biggest-increase-since-november\/","title":{"rendered":"Redfin Reports Home Prices Are Up 3% Year Over Year, Biggest Increase Since November"},"content":{"rendered":"

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Redfin Reports Home Prices Are Up 3% Year Over Year, Biggest Increase Since November<\/b><\/p>\n

A lack of homes for sale is pushing prices up. Inventory posted its biggest decline in 18 months as homeowners cling to relatively low mortgage rates.<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\n(NASDAQ: RDFN) \u2014 The typical U.S. home sold for roughly $382,000 during the four weeks ending July 23, up 2.6% from a year earlier, the biggest increase since November. That\u2019s according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage.<\/p>\n

\nStill, homebuyers are getting a bit of relief as mortgage rates inch down from the eight-month high hit a few weeks ago. The typical monthly mortgage payment is $2,599 at today\u2019s average weekly rate, down $55 from the all-time high of $2,654 in early July.<\/p>\n

\nToday\u2019s housing market is unusual because prices are increasing despite lukewarm demand. Redfin\u2019s Homebuyer Demand Index\u2014a measure of requests for tours and other homebuying services from Redfin agents\u2014is down 3% from a year ago, and mortgage-purchase applications are down about 23%. But inventory has dropped more than demand, with homeowners hanging onto their comparatively low mortgage rates, which is sending prices up. New listings are down 22% from a year ago, and the total number of homes for sale is down 17%, the biggest decline in a year and a half. Pending sales are down 15%, partly because the lack of inventory is tying potential homebuyers\u2019 hands.<\/p>\n

\nThis week\u2019s news that the Fed is no longer forecasting a broad economic recession is hopeful for the housing market, despite the simultaneous interest-rate hike. The Fed indicated that a soft landing is more likely than they had previously thought, which would mean interest rates went high enough to tame inflation but not enough to cause a surge in unemployment and send the economy into a recession.<\/p>\n

\n\u201cThis is hopeful news for the housing market in a few ways,\u201d said Redfin Economic Research Lead Chen Zhao. \u201cAvoiding a recession means Americans will hold onto their jobs, for the most part, and feel more confident about purchasing big-ticket items like a house. Steady progress on taming inflation means that while mortgage rates will probably stay elevated for at least a few months, they\u2019re likely to start coming down before the end of the year. That should encourage some sellers and buyers to jump into the market.\u201d<\/p>\n

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