US Median Home-Sale Price Increases for the First Time in Nearly Five Months, Redfin Reports

Redfin reported on Thursday (7-13-23) that the median US home-sale price increased 1.5% year-over-year during the four weeks ending July 9th. This marks the first increase in home-sale prices in nearly five months.

The average weekly mortgage rates are currently at their highest level since November 2022, bringing the typical homebuyer’s monthly payment to a near-record-high of $2,627 per month.

Redfin notes that prices are increasing despite relatively low demand because there are so few homes for sale. New listings are down 27% year-over-year—the largest drop since the start of the pandemic—and the total number of homes on the market is down 14%, the biggest drop since March 2022. Redfin says that is mostly because potential buyers are locked in by low rates; nearly all homeowners have rates below 6%.

Adding additional background and her analysis to the report, Redfin’s Economic Research Lead Dr. Chen Zhao said:

“This month’s inflation report is likely to bring mortgage rates down a bit from their recent highs. It shows that the Fed’s interest-rate hikes are working and increases the chance they’ll only hike rates one more time this year. Because elevated mortgage rates are responsible for both of today’s major homebuying challenges—high monthly housing payments and low inventory—any decline is welcome news for buyers. But even though rates will come down slightly, they’ll likely remain well above 6% until the Fed sees several more months of inflation readings closer to their target.”