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SEATTLE–(BUSINESS WIRE) — (NASDAQ: RDFN) — House prices rose 1.5% month-on-month in May, the lowest in May in Redfin reports since 2012, according to a new report. report from Redfin (redfin.com), a technology-based real estate brokerage company.

The housing market has cooled significantly as mortgage rates have risen to their highest levels since 2009. Seasonally adjusted home sales fell 3% from the previous month, the only recorded May decline outside of 2020, when the onset of the pandemic rocked the housing market. . Despite this decline in demand, the number of homes for sale is still down from last year. As the market remains tight and new listings also decline, May saw the smallest drop in active listings since November 2019.

“The sudden and dramatic rise in mortgage rates came as a shock to the housing system,” said Daryl Fairweather, chief economist at Redfin. “With inflation still at a 40-year high, mortgage rates are likely to stay high for a while longer, so the market will have to adjust to this new reality. The good news is that cheap debt is no longer fueling unsustainable house price increases and existing homeowners are well positioned to have record high net worth with debt financed at record low mortgage rates. However, homebuyers are facing mortgage rates approaching 6%, meaning the housing market slowdown is likely to continue into the fall, but on the positive side, homebuyers are facing less competition for the first time in two years.”

May Highlights

Market Review

May 2022

Month after month

Year after year

Average selling price

$430,600

1.5%

14.8%

Houses sold, seasonally adjusted

556 200

-3.0%

-10.2%

Expected sales, seasonally adjusted

516 500

0.3%

-9.2%

New listings seasonally adjusted

614 200

0.8%

-4.5%

All houses for sale seasonally adjusted

1 372 800

-0.7%

-4.3%

Average number of days on the market

16

-one

0

Delivery months

1.4

0

0.1

Sold above list

59.3%

0.4 points

5.8 points

Average valuation of rudd off the market

$420,600

1.4%

22.3%

Average sale per list

103.1%

0 points

0.9 points

Average fixed rate mortgage for 30 years

5.23%

+0.25 points

+2.27 points

†- “pts” = percentage change

Subway level highlights

Competition

  • Indianapolis was the fastest market, with half of all homes expected to sell in just 4 days, the same as a year earlier. Denver, Omaha, Nebraska, Oklahoma City and Portland, Oregon were the next fastest markets with 5 average days per market.

  • In San Jose, California, 84.5% of homes are selling above list price, more than any other subway Redfin analyzed. This is followed by 83.6% in Oakland, California, 79.3% in Worcester, Massachusetts, 76.3% in San Francisco and 76.0% in Rochester, New York.

Prices

  • North Port, Florida saw the highest price increase in the nation, rising 30.5% year-over-year to $475,000. Tampa, Florida follows with 28.1%, followed by Las Vegas (26.8%), Knoxville, Tennessee (25.9%) and Orlando, Florida (25.8%).

  • None of the subways saw price cuts in May.

Sales

  • Honolulu led the nation in year-on-year sales growth, up 5.0%, followed by Denver, up 4.0%. El Paso, Texas rounded out the top three with 3.7% sales growth.

  • West Palm Beach, Florida saw its biggest drop in sales since last year, a 25.5% drop. This is followed by Lake County, Illinois (-22.9%) and Anaheim, California (-22.4%).

Inventory

  • Elgin, Illinois saw the highest growth in homes listed for sale, at 35% year-on-year, followed by Chicago (18.9%) and Austin, Texas (15.6%).

  • Allentown, Pennsylvania, saw the biggest drop in total active listings, falling 46.3% since May last year. It is followed by Greensboro, North Carolina (-35.2%), Bridgeport, Connecticut (-31.6%) and Hartford, Connecticut (-29.3%).

Rudd assessment

  • Miami (48.4%) had the largest share of homes predicted to sell below list price, according to the Redfin Estimate, followed by Baton Rouge, Los Angeles (40.6%) and Tulsa. Oklahoma State (40.0%).

  • Sacramento, California (90.8%) had the largest proportion of homes predicted to sell at or above list price, followed by Oakland (90.1%) and Worcester (89.6%).

To view the full report, including charts and methodology, visit: https://www.redfin.com/news/housing-market-may-home-sales-decline/

About rudd

rudd (www.redfin.com) is a high-tech real estate company. We help people find homes through brokerage, instant home buying (iBuying), renting, lending, title insurance and renovation services. We sell houses for more and charge half the price. We also operate the #1 real estate site in the country. Our homebuying clients will first see the homes during on-demand tours, and our lending and title services will help them close the deal quickly. Customers selling a home can take advantage of Redfin’s instant cash offer or ask our home improvement team to refurbish their home to sell it for the highest possible price. Our rental business enables millions of people across the country to find apartments and houses for rent. Since launching in 2006, we’ve saved clients over $1 billion in commissions. We serve over 100 markets in the US and Canada and employ over 6,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit Data center Redfin. To be added to the Redfin press release mailing list, email [email protected] To view the Redfin press room, Click here.

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