New Home Listings Surge to Three-Year High 

Redfin recently reported that the four weeks ending May 18 saw an 8.4% year-over-year (YoY) increase in new listings of U.S. homes for sale, reaching their highest level in almost three years. However, buyers aren’t biting: mortgage purchase applications are down 5% week-over-week, and pending sales declined 2.2%, reaching their lowest level for this time of year in Redfin’s records, which go back to 2015.

Overall, inventory is piling up as a result of the increase in listings and the drop in sales. At its greatest level in almost five years, the total number of properties for sale increased 14.3% annually.

“Clients are asking me to call them when we’re at a tipping point, because they want to sell before prices drop,” said Hazel Shakur, a Redfin Premier agent in Maryland. “My advice to homeowners: if you’re planning to sell in the next year or two, do it now because we don’t know what’s going to happen with home values or the larger economy. Buyers should know that because of the uncertainty in the air, they may be able to get a home for under asking price, or get concessions from the seller.”

Housing Market Data — National

Because homes are more expensive than ever and people are hesitant to make such a significant investment due to economic uncertainty, fewer Americans are purchasing homes. With home prices rising 1.7% year over year and mortgage rates close to 7%, the median monthly housing payment reached an all-time high of $2,882. Due to concerns about a trade war and a possible recession, consumer mood is at an all-time low, and many people who can afford to buy are reluctant to do so.

On the supply side, the rise in listings is partly a result of the uncertain economy and expensive expenses. Some sellers are selling because they wish to move to a less costly neighborhood or a smaller property in order to save money. Some people are listing because they think that home values will soon begin to fall, while others are motivated to list their house before competition increases due to the increase in inventory. Furthermore, some people must sell at any time because of a significant life event, such as a divorce or a career change.

Measuring Housing Trends Metro-by-Metro

The top 5 metros with biggest YoY increases in median sale price were:

1. Philadelphia (13.8%)
2. Miami (10.2%)
3. Detroit (9.5%)
4. Pittsburgh (9.2%)
5. Providence, RI (8.8%)

Overall, the median sale price declined in 10 U.S. metros.

The top 5 metros with the biggest year-over-year decreases in median sale price:

1. Oakland, CA (-5%)
2. Dallas (-3.4%)
3. Austin, Texas (-3.1%)
4. Tampa, FL (-2.4%)
5. Houston (-1.2%)

The top 5 metros with biggest YoY increases in pending listings included:

1. Cincinnati (5.6%)
2. Indianapolis (4.7%)
3. Milwaukee (3.1%)
4. Virginia Beach, VA (3%)
5. Chicago (2.7%)

U.S. pending sales increased in 12 metros across the nation.

The top 5 metros with biggest YoY decreases in pending listings included:

1. Miami (-18%)
2. Fort Lauderdale, FL (-17.1%)
3. Las Vegas (-12.6%)
4. San Jose, CA (-11.3%)
5. Detroit (-11.1%)

The top 5 metros with biggest YoY increases in new listings:

1. Washington, D.C. (20.1%)
2. Houston (17%)
3. Boston (15.4%)
4. Baltimore (15%)
5. Seattle (14.5%)

New listings saw moderate activity compared to the mentioned above, declining in just six metros nationwide.

The top 5 metros with biggest YoY decreases in new listings included:

1. Orlando (-8.4%)
2. Fort Lauderdale, FL (-7.5%)
3. San Antonio (-6.9%)
4. San Jose, CA (-6.4%)
5. Tampa, FL (-4.2%)

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