US Existing-Home Asking Prices Decline for First Time Since March

According to Redfin, the median US asking price of an existing home for sale fell 0.3% year-over-year during the four-week period ending October 11, marking the first annual decline since March.

The median US home-sale price rose just 0.5% year-over-year, the slowest growth rate since March. Meanwhile, 22% of sellers with active listings reduced their asking prices, up from 20.9% a year earlier and the highest share in Redfin’s records.

Mortgage rates remained elevated, with the weekly average reaching 7.4% on October 8, a three-year high. Daily average rates eased slightly to 7.45% on October 14, down from 7.61% about a week earlier. The typical homebuyer’s monthly mortgage payment reached $2,777, the second-highest level on record.

Homebuying demand remained near record lows. Pending home sales increased 1.5% from the previous week but remained near their lowest level since Redfin began tracking the measure in 2021. Pending sales declined year-over-year in all 50 of the most populous US metropolitan areas.

Housing inventory continued to grow modestly. New listings increased 0.4% week-over-week, while the total number of homes for sale rose 0.8%.