TAMPA, Fla. (WFLA) — New home listings fell 25% year-over-year to an all-time low for early June, propping up home prices and handcuffing homeowners to their current abode.
The bitter outlook comes from Redfin’s monthly report which analyzed new listings of homes for sale during a four-week period ending June 4.
The lull in new home listings combined with elevated mortgage rates (6.94% on June 7) were driving factors for a worsening inventory shortage, according to the online real estate brokerage.
Fewer listings mean more competition — and therefore higher bids.
“Homes priced under $500,000 are flying off the market because buyers in that price range don’t have many options,” Sacramento Redfin Premier agent David Orr said. “I’ve been working with one first-time homebuyer for about a year. But the problem we’re facing now is competition.”
“She just made an offer nearly $30,000 above asking price for a home listed at $429,000, but she lost out because it had four other offers.”
On the other side of the coin, the vast majority of homeowners already have a mortgage rate below 6%, but decades-high rates are stoking fears discouraging homeowners from listing their homes and losing their relatively low rates.
To make matters worse, home prices are still increasing in some parts of the country. The median U.S. asking price of $397,475 is unchanged from a year ago after several weeks of declines, indicating that sellers in at least some metro areas are noticing they can command favorable prices.
But it’s not all bad news. Homes that sold were on the market for a median of 28 days — the shortest span since September — but up from a record low of 18 days a year earlier.
Similarly, 35.2% of homes sold above their final list price. That’s the highest share since September but is down from 54% a year earlier.
“I’m advising buyers to get their loan pre-approved and look at homes under budget so they’re prepared to go above asking price,” Orr said.