Pending home contracts fell for the sixth month in a row, while more sellers report dropping their home price.
Realtor.com® found that contracts fell 3.9% year over year in April, when the median listing price hit $425,000 and mortgage rates surpassed 5%. As many buyers continue to struggle with affordability and limited inventory, some sellers are finding they are needing to drop their original listing price to attract a signed contract.
Redfin reported that 19.1% of sellers dropped their home price in the four weeks leading up to May 22, suggesting a market slowdown may happen into the summer. Additionally, people searching Google for houses for sale fell 13.1% year over year and mortgage applications were down 16% from the same period last year.
However, the median asking price of newly listed homes rose 18% year over year, as prices continue to consecutively hit record highs. It’s unclear if the inventory shortage will continue to plague the market, as new listings were only down 0.9% year over year. However, active listings fell 13% from the same time last year, but that is the smallest drop in more than two years.
Homes are still moving quickly off the market though, 55% of homes accepted an offer within the first two weeks, up 2% year over year and 40% accepted an offer within one week of their home hitting the market. Homes were only on the market for a median of 15 days, a record low, down four days year over year. And a record-high of 57% of homes sold for over listing, up 7% year over year. Additionally, the average sale-to-list price ratio was 102.8%, meaning how close homes sold to their listing price, an increase of 1.2% year over year.
Topics
Member Discussion
Recent Articles
-
Homeowner’s Insurance Problems? We’ve Got a Form for That!
- February 14, 2025
- 4 min. read
Whether working with buyers or sellers, be sure to take another look at these existing contingencies to understand how they might work in your transactions, and then talk with your clients.
-
Young Adults Still Waiting to Move Out
- February 13, 2025
- 2 min. read
The most recent data from 2023 reported 17.8% of young adults living with parents in Pennsylvania, with neighboring states seeing some of the highest shares.
-
10 Luxury Home Trends of 2024
- February 12, 2025
- 2 min. read
Luxury homeowners went big last year, focusing on health and well-being, comfort and security and finding joy.
Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.