US Existing-Home Listings Reach Highest Level Since April as Demand Retreats

Redfin reported that new existing-home listings rose 0.4% from a week earlier during the four weeks ending August 23, reaching their highest level since April. The total number of homes for sale increased 0.5% week-over-week to its highest level since May.

Meanwhile, pending home sales fell 1.1% from a week earlier to their lowest level in six months. Redfin said would-be buyers are largely remaining on the sidelines because of high housing costs and economic uncertainty.

The median US home-sale price rose 1.9% year-over-year to more than $400,000, while the weekly average mortgage rate was 6.65%, down from a peak of 6.69% two weeks earlier but still near its highest level in 13 months. Redfin said some prospective buyers are also waiting to see whether mortgage rates decline in the coming months.

Commenting on the report, Redfin Head of Economic Research Chen Zhao said:

“Buyers have an opportunity to get a deal done before the market potentially picks back up after Labor Day. House hunters should consider homes that have been listed for several weeks; sellers of those homes may be willing to accept an offer under asking price, provide concessions like a mortgage-rate buydown or make repairs based on an inspection. Sellers should resist the urge to price based on what a neighbor got a year or two ago. Pricing a home correctly from the start can be the difference between attracting a serious buyer and lingering on the market.”