Buyers Still Struggling to Find Homes

If your buyers are still struggling to find a property to buy, they are not alone.

Limited inventory continues to plague the market nationwide, leaving many would-be buyers empty-handed. According to Redfin, new listings dropped 22% from March 5 through April 2, representing one of the largest falls in three years. For homes that do go on the market, 47% have a signed contract within two weeks, an increase from the start of the year, when about 25% were going under contract that quickly, but a decrease from last April, when more than half of homes were going under contract in two weeks or less. On average, homes were on the market for 39 days, up 16 days year over year. However, new listings decreased 21.8% year over year and thus not surprising, pending sales dropped 18.9% year over year.

Home prices are falling slightly; the median price in the U.S. dropped 2.1% to $361,796. The fixed mortgage rate also fell to 6.28%, still more than double the rate it was a year prior. For a consumer purchasing an average-priced home in the U.S. with a 30-year fixed mortgage, their average payment would be $2,508, up 15% from last year’s ($2,182). More than a quarter (27%) of homes sold for more than their listing price, the highest number since the start of the year. Five percent of homes on the market dropped their price each week, an increase of 2.8% from last year. The number of homes selling near their listing price was the highest level in five months.

Buyers who are searching “homes for sale” grew 44% compared to December, but dropped nearly 20% year over year. Home tours rose around 20% from January.