The Business Journal reports:
- Once more lack of housing inventory is driving a competitive housing market. And, with interest rates still high, those who might have been inclined to move are staying put with their comfortable interest rates as opposed to moving and facing higher monthly expenses, thus reducing even more available housing stock.
- In March 2023 according to Zillow, 30% of homes sold for above list price nationally, the first increase since October. Homes selling above their asking price is one indication of a housing market’s competitiveness although 30% is well below the 2021 rates. A chief economist at Redfin said, “Single-family starter homes that are close to transit and jobs are still attracting bidding wars.”
- Redfin reported that forty-eight percent of homes sold nationally during the four weeks ending April 30 went under contract within two weeks, down from 51% a year ago but up from 46% a month prior.
- Redfin also reported that new listings in April were down 23% from a year earlier, which is the second biggest decline since the start of the pandemic. The total number of homes for sale has declined in the past four weeks, meaning buyers are snatching up homes faster than they are being replenished by new listings. New listings were up 9.2% on a month-over-month basis in April.
- The chief economist went on to say, “It’s somewhat surprising to see bidding wars and competition for houses heating up, mostly because buyers are generally sensitive to interest-rate increases. But the uptick in demand shows how much pent-up demand for housing there continues to be.
- Read the full article
