Uptick in Existing Homes For Sale Provides Home Buyers With Some Much-Needed Good News

Redfin reported on Thursday (10-26-23) that in the four-week period ending on Sunday, October 22nd, new listings of existing homes for sale increased 0.3% year-over-year. Albeit a small increase, this is the first increase since July 2022.

Redfin notes that more homeowners are putting their homes on the market as mortgage rates remain elevated near 8%. Some sellers are accepting that rates are unlikely to meaningfully decline anytime soon and finally parting with their relatively low rates, while others are nervous tepid demand could cause home prices to fall if they wait any longer, Redfin says. It is also worth noting that new listings were falling fast at this time last year as mortgage rates rose.

From the buy side, buyers are welcoming even a small uptick in listings after nearly a year and half of steady declines. Although many homebuyers are staying on the sidelines, with mortgage-purchase applications down 2% week-over-week to their lowest level in nearly 30 years, some house hunters are out there. Pending home sales posted their smallest annual decline in a year and half. However, Redfin points out that is partly because pending sales were dropping at this time last year.