Redfin, the Seattle-based, technology-powered real estate brokerage firm, is reporting the housing market cooled considerably in May as mortgage rates climbed to their highest levels since 2009. Seasonally adjusted, home sales fell -3% month over month–their only May decline on record outside of 2020, when the start of the pandemic sent shockwaves through the housing market.
Despite this decline in demand, the inventory of homes for sale still fell from a year earlier. The market remains tight and new listings have also declined. May saw the smallest drop in active listings since November 2019.
Redfin is also reporting that home prices increased only 1.5% month-over-month in May. This is the smallest increase in Redfin’s records for May, which date back to 2012.
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Home Sales Post Rare May Decline as Mortgage Rates Rise