While the market is still red-hot, some metrics collected by Redfin in September covering 400 metro areas are beginning to cool, as is expected for this time of year.
For example, fewer than half of homes are selling above list price and new listings of homes for sale down 20% from their 2021 peak. Additionally, new listings of homes for sale are down 8% year-over-year and active listings as a whole are down 22%.
“Home sellers continue to show their optimism with increasing asking prices,” said Redfin Chief Economist Daryl Fairweather. “However, there are already signals from the Fed and markets that mortgage rates are starting to creep up. The hit to affordability that comes with higher rates and higher home prices could let some steam out of the market. It’s never a good idea to overprice your home, but I would be especially wary of overpricing as seasonal cooling trends persist and rising rates take some affordability out of the homebuying equation.”
The report also found:
- The median home-sale price increased 13% year-over-year to $356,358.
- Pending home sales are up 4% year-over-year, the smallest increase since June of 2020.
- 46% of homes that went under contract had an accepted offer within the first two weeks on the market, above the 43% of homes a year earlier.
- 33% of homes that went under contract had an accepted offer within one week of hitting the market, up from 31% during the same period a year earlier.
- Homes were on the market for a median of 20 days before being sold, five days longer than the all-time low of 15 days seen in June and July, and down from 32 days a year earlier.
- 48% of homes sold above list price, up from 34% a year earlier.
- On average, 5% of homes for sale each week had a price drop, up 1.4 percent from the same time in 2020, and the highest level since October 2019.