The median U.S. home sale price increased 6.2% year over year in April to $433,558 — the highest level on record, according to Redfin.
Today’s housing market is much slower than it was during the pandemic home buying boom, but prices continue climbing due to low inventory.
New listings increased 1.7% month over month in April and were up 10.8% year over year.
Still, new listings were roughly 20% below pre-pandemic levels, in large part because many homeowners don’t want to sell, as they feel “locked in” by the low mortgage rate they scored during the pandemic.
It’s worth noting that last April, new listings were at the lowest level on record aside from the start of the pandemic, which is one reason they’re now posting such a large year-over-year gain.
Home sales were up 0.2% in April on a seasonally adjusted basis but were down 1.4% from a year earlier.
“It’s not all bad news for homebuyers,” says Chen Zhao, economics research lead for Redfin, in a statement. “Mortgage rates are already inching lower in response to this week’s inflation report, which signaled that the Fed may cut interest rates this summer – a possibility that just weeks ago many thought was off the table.
“In certain parts of the country, buyers also have room to negotiate as homes linger on the market, prompting sellers to slash their asking prices and provide concessions,” Zhao adds.
Active listings rose to the highest level since December 2020 in April. They were up 0.3% from a month earlier and up 7.5% from a year earlier on a seasonally adjusted basis, though remained far below pre-pandemic levels.
Photo: Phil Hearing