New Listings of US Homes For Sale Decline 22.4% Year-Over-Year

Redfin reported on Friday (4-28-23) that in the four-week period ending on April 23rd, new listings of homes for sale fell 22.4% nationwide from a year earlier. This is one of the largest declines since the start of the pandemic.

Redfin points out that homeowners are staying put because they want to keep their low mortgage rates (this week’s average 30-year mortgage rate increased for the second consecutive week) and because it’s hard to find another home to buy. The result is a lack of new listings which is driving an unseasonal decline in the total number of homes for sale.

The same lack of inventory is also making some homes sell quickly. Redfin notes that nearly half of homes on the market are selling within two weeks, the highest portion in nearly a year. The share has increased throughout April, atypical for this time of the year. That is in spite of elevated mortgage rates keeping some buyers on the sidelines, with pending home sales down 17% year-over-year.

Adding additional background and his analysis to the report, Redfin’s Deputy Chief Economist Taylor Marr said:

“High mortgage rates have caused some homebuyers to bow out of the market. But there are still more people looking for a home than there are homes for sale. That’s good news for homeowners who want or need to sell their home now. In certain parts of the country where new listings are especially rare, sellers who price their home in line with the market are attracting multiple offers. Propped-up home prices and values also bode well for the future of the housing market because they may eventually lure more prospective sellers off the sidelines.”