As mortgage rates hover near 7%, homebuyers are feeling the increase.
Between mid-August and late September, the average homebuyer’s monthly mortgage payment has risen 15% or $337, reaching $2,547 for the median asking price, a new high, according to Redfin. This is up 50% year over year, when the median monthly payment was $1,698 for the median asking price. By the end of September, mortgage rates officially hit 6.7%, the highest level in more than 15 years. Despite buyers’ hesitations on entering the market, sellers are still listing. While it is far from a balanced market, supply across the U.S. reached three months for the first time in more than two years. Acting listings are up 6% year over year. The report also found that touring activity was down 18% compared to the beginning of the year.
However, despite these challenges, home prices did see an increase, rising 1% from the beginning of September to the end, after 11 weeks of consecutive drops. The median home sale price was $369,250, while the median asking list of newly listed homes was $384,750, a 10% increase from last year. Pending home sales have dropped 21% year over year, the biggest drop since May 2020, while new listings are down 14% year over year. Around one-third (35%) of homes were under contract within two weeks of entering the market, down 5% year over year. Homes under contract within a week of listing dropped from 28% to 24% year over year.
Not surprisingly, homes are lasting on the market a bit longer, homes that sold between mid-August and late September were on the market for a median of 31 days, up from 24 days year over year. The record low was 17 days in May-June 2022. Still, one-third of homes sold above their asking price, a decrease of 14% year over year and the lowest since February 2021.
Topics
Member Discussion
Recent Articles
-
How to Take Your Value Prop to New Levels
- February 17, 2025
- 3 min. read
During RISMedia’s Rocking in the New Year virtual educational event, a few real estate agent panelists discussed how others can take their value proposition to new levels.
-
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.
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.