Housing Asking Prices Hit All-Time High While Inventory Surges
Redfin and Realtor.com reports sort out dynamic data with first new-listings dip in five months.
New housing data released show inventory hit a 2021 high in September, giving buyers more choices than they have had all year, according to the Realtor.com Monthly Housing Report.
Nearly one-third of the 50 largest metros continued to see increases in newly-listed homes compared to last year and in Austin, Portland, Jacksonville and Washington, D.C., new listings were up more than 10% year-over-year.
Despite optimism from people listing their homes for sale, pending sales and new listings followed expected seasonal slowdowns.
Asking Prices Hit All-Time High
Meanwhile, asking prices of homes listed for sale increased to an all-time high of 12%, according to a new report from real estate brokerage Redfin.
Pending sales were up just 4%, the smallest year-over-year increase since June 2020, Redfin reported, and other housing market measures continued to show a typical seasonal cooling, with fewer than half of homes selling above list price and new listings of homes for sale down 20% from their 2021 peak.
“Home sellers continue to show their optimism with increasing asking prices,” said Redfin Chief Economist Daryl Fairweather. “However, there are already signals from the Fed and markets that mortgage rates are starting to creep up. The hit to affordability that comes with higher rates and higher home prices could let some steam out of the market. It’s never a good idea to overprice your home, but I would be especially wary of overpricing as seasonal cooling trends persist and rising rates take some affordability out of the homebuying equation.”
Next Month’s Data to Provide Clues
Realtor.com Chief Economist Danielle Hale said. September is typically a strong month, “[but] that’s not what happened in 2020. Still, it’s important to remember that while buyers may have an easier time this fall than they did in the spring, the market remains more competitive than it has been historically at this time of year.
“With new listings in September dipping below last year for the first time in five months, next month’s data will yield important clues about whether this setback is going to be temporary or a new trend.”