Housing Market Update: Listings Surge, Luring Some Buyers off the Fence, But Near-Record Housing Costs Price Others Out

by Real estate financingMission+
9 minutes read

New listings rose 13% from a year earlier, their biggest increase in nearly three years, but home prices and mortgage rates remain elevated.

The median U.S. monthly housing payment was $2,686 during the four weeks ending March 10, just $30 shy of last October’s all-time high. That’s due to a combination of still-high mortgage rates and rising prices. While mortgage rates came down slightly this past week after increasing for four straight weeks, they’re still near 7%, and sale prices are up 5% year over year nationwide. On a local level, prices increased in all 50 of the most populous U.S. metros, the first time that has happened since July 2022.  

High housing costs are still pricing out some would-be homebuyers, with pending sales down 6% from a year earlier. But more house hunters are wading into the market; mortgage-purchase applications rose for the second week in a row. That’s partly because supply is steadily improving, giving buyers who can afford elevated prices and rates more homes to choose from. New listings are up 13%, the biggest annual increase in nearly three years, and the total number of homes for sale is up 3%, the biggest increase in nine months.

“Mortgage rates are likely to stay high a little longer than expected, with the latest inflation report essentially eliminating any chance of the Fed cutting interest rates before June,” said Redfin Economic Research Lead Chen Zhao. “Buyers who can afford to may want to get serious about their home search now, as housing costs are unlikely to fall anytime soon. The uptick in listings should be another motivator for buyers: There’s more to choose from, and improving inventory may bring out more competition from other buyers as we get further into spring. Some buyers have already gotten the memo, with mortgage applications finally increasing after weeks of declines.” 

For more on Redfin economists’ takes on the housing market, including how current financial events are impacting mortgage rates, please visit our “From Our Economists” page. 

Leading indicators

Indicators of homebuying demand and activity
Value (if applicable) Recent change Year-over-year change Source
Daily average 30-year fixed mortgage rate 6.94% (March 13) Down from 6.97% a week earlier Up from 6.75% Mortgage News Daily 
Weekly average 30-year fixed mortgage rate 6.88% (week ending March 7) Down from 6.94% a week earlier; first decline after 4 weeks of increases Up from 6.73% Freddie Mac
Mortgage-purchase applications (seasonally adjusted) Up 5% from a week earlier (as of week ending March 8); 2nd straight week of increases Down 11% Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted) Up 5% from a month earlier (as of week ending March 10) Down 10% Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Google searches for “home for sale” Down 4% from a month earlier (as of March 9) Down 19% Google Trends 
Touring activity Up 29% from the start of the year (as of March 10) At this time last year, it was up 20% from the start of 2023 ShowingTime, a home touring technology company 

Key housing-market data

U.S. highlights: Four weeks ending March 10, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision. 

Four weeks ending March 10, 2024 Year-over-year change Notes
Median sale price $371,750 5.1%
Median asking price $399,850 4.9%
Median monthly mortgage payment $2,686 at a 6.88% mortgage rate 7.3% Just $30 shy of all-time high set in October 2023
Pending sales 79,779 -5.8%
New listings 85,122 13% Biggest increase since June 2021 
Active listings 780,779 2.9% Biggest increase since May 2023
Months of supply  3.5 months +0.4 pts.  4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions. 
Share of homes off market in two weeks  40.2% Up from 38%
Median days on market 45 -2  days
Share of homes sold above list price 25.1% Up from 24%
Share of homes with a price drop 5.6% +1.5 pts.
Average sale-to-list price ratio  98.6% +0.3 pts. 

 

Metro-level highlights: Four weeks ending March 10, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. 

Metros with biggest year-over-year increases Metros with biggest year-over-year decreases Notes

Median sale price

San Jose, CA (16.3%)

Newark, NJ (15.1%)

Boston (14.9%)

West Palm Beach, FL (14.8%)

Fort Lauderdale, FL (13.8%)

n/a

Increased in all metros 

Pending sales Milwaukee (11.5%)

San Francisco (9%)

Cincinnati (8%)

Minneapolis (7.5%)

San Jose, CA (5.8%)

San Antonio, TX (-25.8%)

New York (-15%)

Atlanta (-14.8%)

Houston (-13.9%)

New Brunswick, NJ (-13.8%)

Increased in 12 metros
New listings San Jose, CA (30.4%)

Phoenix (29.9%)

Las Vegas (27.4%)

Minneapolis (26%)

Jacksonville, FL (24.9%)

New York (-18.4%)

Atlanta (-5.8%)

Newark, NJ (-3.9%)

Chicago (-0.7%)

Virginia Beach, VA (-0.4%)

Philadelphia (-0.2%)

Declined in 6 metros

Refer to our metrics definition page for explanations of all the metrics used in this report.

Source

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