Here’s where home prices fell the most in April: Redfin report
(The Hill) – Nationwide home prices saw their steepest annual decline in more than a decade last month –falling by nearly $18,000, according to a report released on Monday.
The report from real estate brokerage Redfin found that the largest drop in prices was seen in expensive California markets and in pandemic-era boomtowns, such as Boise, Idaho, and Austin, Texas.
Homes in Oakland, Calif., experienced the largest percentage dip in home prices, falling by 16.1 percent or by $174,500 from a year ago.
Overall, median prices declined in 45 out of more than 90 metros analyzed by Redfin.
Prices are dropping largely due to fluctuating mortgage rates that are still well above 6 percent after reaching historic lows during the pandemic.
The 30-year fixed rate mortgage rose to 6.39 percent last week after standing at 5.25 percent at the same time last year.
“Elevated mortgage rates are preventing would-be buyers from buying and would-be sellers from selling. And because sellers aren’t selling, the buyers who are out there have very limited options,” Redfin Chief Economist Daryl Fairweather said in a statement.
“Home prices are faltering due to sluggish homebuyer demand, but the shortage of homes for sale is preventing them from falling as much as they did in the Great Recession,” she continued.
Fairweather added that prices are rising in some places as both the pool of buyers and available inventory are limited.
Close to a third of homes that sold in April were purchased above the final list price.
Meanwhile, new listings dropped 26.1% year over year on a seasonally adjusted basis in April alongside falling home sales.
Separate data shows that existing home sales — completed transactions that include single-family homes, town homes, condominiums and co-ops — declined by 3.4 percent from March to a seasonally adjusted annual rate of 4.28 million units.
Year-over-year sales fell by 23.2 percent, data from The National Association of Realtors showed. Total housing inventory increased by 7.2 percent month-on-month to 1.04 million units.