New Listings of US Homes For Sale Dips for Eighth Consecutive Month

Redfin recently reported that for the four-week period ending on Sunday, April 9th, new listings of US homes for sale dropped 25% year-over-year. This continues an eight consecutive month streak of double-digit declines of new home listings. New listings fell from a year earlier in all 50 of the most populous US metro areas, with the biggest declines being recorded in California.

Redfin notes that currently people are reluctant to sell because they don’t want to give up their low mortgage rate, and it’s hard to find another home to buy. Although rates are down from their November 2022 peak, this week’s average is 6.27%; but 85% of homeowners have a rate far below 6%. The bright side for homeowners who are listing now is that desirable, well-priced homes are being snapped up in bidding wars in markets where demand continues to outpace supply.

Adding additional background and her expert analysis to the report, Redfin’s Chief Economist Daryl Fairweather said:

“The Fed has made some progress cooling inflation with rate hikes but there’s still work to be done. Even if the Fed chooses not to hike rates next month, which would likely bring down mortgage rates, the limited supply of homes for sale would remain a major obstacle for would-be buyers. Rates dipping below 6% would probably pique the interest of more buyers, but enough homeowners have rates in the 3% or 4% range that we’re unlikely to see a big uptick in new listings.”