We have finally seen the first year-over-year price decline since 2012, according to the latest data from Redfin.
- The median U.S. home sale price fell 1.2% in February to $386,721, the first year-over-year decline since 2012.
Struggle For Buyers & Sellers. Andrew Vallejo, a Redfin real estate agent in Austin, TX, says it is an adjustment for both buyers and sellers. “Buyers are struggling because higher interest rates have increased the cost of homeownership, and sellers are struggling because they’re still adjusting to the fact that their home won’t sell for what their neighbor’s did a year ago,”
Pace of Sales. The speed at which homes are selling continues to fall. Just under half (44.9%) of homes that went under contract in February did so within two weeks, down from 60.2% one year earlier.
Inventory Remains Depressed. Buyer demand has plummeted to a 28-year low, but amazingly this has not caused a massive surge in inventory. In fact, new listings in February fell 3.5% from January and were down 23.3% year-over-year. Amazingly, inventory is now at the lowest level on record aside from the start of the pandemic.