1 hour ago
15
The US housing market just hit a milestone that sounds encouraging until you look at the fine print. New home listings climbed 2.1% week-over-week for the four weeks ending August 30, reaching their highest level since August 2022, according to Redfin’s weekly housing market report. That’s an 8% jump compared to the same period last year.
The numbers tell a split story
Pending home sales, the best real-time indicator of actual buyer activity, dropped 0.1% week-over-week. That puts them at the lowest reading since February and represents a 2.5% decline year-over-year. In practical terms, more homes are being listed while fewer contracts are getting signed.
Total active listings ticked up 0.4% on the week to roughly 1.51 million homes. Months of supply rose to 4, up from 3.7, creeping toward the 4-to-5-month range that economists generally consider a balanced market.
The typical home sale price came in at $398,632, up 2.2% from a year ago. Combined with mortgage rates sitting at 6.66% for a 30-year fixed loan, near the yearly high, the math for buyers remains punishing.
The median monthly mortgage payment now sits at an estimated $2,592, representing a record low in housing affordability.
Why supply is rising but demand isn’t following
A $400K home at a 6.66% mortgage rate costs roughly $600 more per month than the same home would have cost at the sub-3% rates available in early 2021. Over a 30-year loan, that’s more than $200K in additional interest payments.
What this means for the housing market outlook
For existing homeowners, the 2.2% annual price appreciation is still positive, but it’s barely keeping pace with inflation. Homeowners who locked in sub-4% mortgage rates during 2020 and 2021 remain effectively anchored to their current properties, since trading up means swapping a cheap mortgage for an expensive one.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
English (US) ·