Currently Reading

Homes Are Selling at a Record Pace, But to a Smaller Share of Buyers

Advertisement
New-Home Sales

Homes Are Selling at a Record Pace, But to a Smaller Share of Buyers

Home sales are speeding up as a small number of remaining buyers go toe to toe in an overpriced housing market


May 13, 2022
Fast home sales arrows in home targets
Image: Stock.adobe.com

A growing number of homebuyers are backing out of the housing market as elevated mortgage rates continue to put a dent in housing affordability, but those who remain are buying up homes at a record pace, according to Redfin. The average home for sale found a buyer in just 15 days during the four-week period ending May 8, marking the fastest rate of home sales on record. Meanwhile, pending sales dropped 6% year-over-year and mortgage purchase applications also fell 8% from a year earlier.

A drop in buyer activity is the result of record high median home sale prices resting around $397,356, as well as higher monthly mortgage payments, which most recently reached $2,427 at the current 5.3% mortgage rate.

“Rising mortgage rates have taken a notable bite out of demand,” said Redfin Chief Economist Daryl Fairweather. “But still, homebuyers who remain in the market are facing stiff competition, especially for the most desirable homes. Given the lack of homes for sale, it would take a much larger drop in demand for buyers to really feel like the market has truly turned in their favor.”

The share of homes for sale with price drops shot up to a seven-month high of 16% during the four-week period as early-stage homebuying demand as measured by Redfin’s Homebuyer Demand Index in the latest week fell 7%—the largest annual decline since April 2020.

Read more

Related Stories

Market Data + Trends

Housing Inventory Is Falling at Its Slowest Pace in Two Years

April for-sale housing inventory fell at a single-digit year-over-year pace for the first time since the start of the pandemic

Housing Markets

Which Local Housing Markets Will See Price Reductions in 2022?

Some overheated housing markets are already seeing prices drop, but most will be bogged down by more gains throughout the majority of 2022

Financials

Nearly Half of All U.S. Homes Were Equity-Rich in the First Quarter of 2022

Equity-rich homeowners are cashing out and leaving pricey markets to buy new homes in low-cost states

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.