Published Date 4/11/2022
Cause and effect: interest rates go up and those holding off on listing their homes sit up and finally pay attention. Fear of missing out (FOMO) regarding getting the prices they want for their homes is now being tempered by the idea that fewer and fewer buyers can afford them as rates continue to rise to curb inflation.
According to Mansionglobal’s Ayce Kelce, more sellers have been listing their homes, providing a breath of fresh air to the U.S. real estate market that has been struggling with low inventory levels since the beginning of the pandemic. “The number of homes listed in the week through Saturday increased by 8% compared to the same time in 2021 after decreasing in the prior four weeks, according to a Realtor.com report published on Thursday,” says Kelce.
She goes on to say that the median price of homes in the U.S. surged 15.3% over the last year, with active inventory down 13%. However, the boost in new listings alongside increasing mortgage rates cooling demand indicate a possible return to a more stable housing market. Reports also project that for the first time in three years, the number of homes for sale could start to grow on a year-over-year basis by this summer.
The best time to list? Realtor’s research says it’s THIS WEEK (April 10-16) based on data indicating surging buyer demand, high home prices, quick sales and less competition from other sellers compared to 2021 numbers. “We are in the stage of the home-buying season when inventory typically starts rising from the year’s low point,” Danielle Hale, Realtor.com chief economist, said in the report.
However, even with ever-growing median listing prices and surging demand, more sellers have been dropping their asking prices — good news for buyers. “Around one in every 10 listings, or roughly 12% homes currently listed, had a price drop during the four weeks ending Sunday, which was up from 9% at the same time in 2021 and the highest share since early December, according to a separate report released by Redfin on Thursday,” says Kelce.
“Price drops are still rare, but the fact that they are becoming more frequent is one clear sign that the housing market is cooling,” Daryl Fairweather, Redfin chief economist, said in the report. “It goes to show that there’s a limit to sellers’ power. There is still way more demand than supply, and buyers are still sweating, but sellers can no longer overprice their home and still expect buyers to clamor at their door.”