SEATTLE, WA — The U.S. housing market showed signs of renewed vigor as new listings rose 13% in the four weeks ending March 3, the largest increase in nearly three years, according to a report by real estate brokerage Redfin. This surge helped push the total number of homes for sale up by 1.7%, marking the first annual increase after eight consecutive months of declines.
The report also pointed to some encouraging signs for potential buyers. The asking prices of new listings recorded their smallest increase in approximately two months. Moreover, 5.5% of home sellers reduced their asking price, the highest proportion for any February since at least 2015.
Despite high mortgage rates nudging the median monthly housing payment close to an all-time high at $2,694, the final sale prices, which jumped 5.3% year over year, are expected to start declining as price growth for new listings begins to slow.
As spring approaches, house hunting activity is also on the rise. Touring activity has seen a 23% increase from the start of the year, compared to a 14% increase during the same period last year. Mortgage-purchase applications have gone up 11% week over week. However, this early-stage buying activity hasn’t yet resulted in a boost in sales, with pending sales down 6% year over year.
Chen Zhao, Redfin Economic Research Lead, noted the impact of these developments on potential homebuyers. “Low inventory and high housing costs have been major obstacles for homebuyers over the last year,” said Zhao. “Now, the first barrier is starting to come down as more supply comes on the market. Housing costs are still high but they’re likely to come down a bit as mortgage rates gradually decline through the year and price growth loses some steam.”
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