The average monthly housing payment in the U.S. reached an all-time high of $2,721 during the four weeks ending March 24, up 10% from a year ago, according to a new Redfin study.
Housing payments are at an all-time high due to the combination of high mortgage rates and growing home prices. Mortgage rates remain above 7%, while the median home-sale price is up 5% year-over-year to over $375,000, barely $9,000 short of the June 2023 record high.
According to Redfin, many home sellers are hoping to capitalize on rising prices by listing their home. New listings are up 15%, the biggest increase in nearly three years, while the overall number of properties for sale is up 6%, the most in almost a year.
Increased supply is reviving some demand, which is the primary reason price growth remains strong. Mortgage-purchase applications are up 14% from a month ago, and pending home sales are only 1% down than a year ago—the smallest drop since the beginning of the year.
“High mortgage rates aren’t deterring buyers as much as they were last year; a lot of people want to get in now before prices go up more,” said Miami Redfin agent Rachel Riva. “All of my recent listings have gone under contract in under 10 days, and most of them have received multiple offers. Buyers are lessening the impact of elevated rates in a few ways: Some are making high down payments to lower their monthly payments, and some are willing to take on a high rate now in hopes of refinancing when and if rates come down.”
Redfin reports that there are a few indications that price growth may slow in the coming months. This week, nearly 6% of house sellers reduced their asking price, the largest percentage on record for March. Months of supply reached its highest level in March since 2020, when the pandemic brought the housing market to a halt, signaling that the market is rebalancing.
Metros with Biggest YoY Increases in Pending Sales:
- San Jose, CA (25.1%)
- San Francisco (20.1%)
- Cincinnati (11.6%)
- Anaheim, CA (9.9%)
- Seattle (8.2%)
Metros with Biggest YoY Increases in New Listings:
- San Jose, CA (41.8%)
- Sacramento, CA (38%)
- Phoenix (31.7%)
- Las Vegas (27.3%)
- Austin, TX (26%)
New listings declined in just 2 metros: Atlanta (-6.6%) and Chicago (-2.9%).
Metros with Biggest YoY Increases in Median Sale Price:
- West Palm Beach, FL (20.7%)
- San Jose, CA (17.6%)
- Miami (16.1%)
- Detroit (15%)
- New Brunswick, NJ (14.5%)
The median sale price declined in just one metro, San Antonio, TX (-0.3%).
To read the full report, including more data, charts, and methodology, click here.
