New data out from Redfin shows that home-sale prices rose 3.2 percent year over year during the four-week period ending November 6, the smallest increase since July 2020. The median home sale price has fallen 8.4 percent since reaching an all-time high in June.
Home prices rose half a percent during the same period last year.
“Overall inflation rate is finally starting to back off makes it even more likely that the Fed will slow their rate increase to 50 basis points next month,” said Redfin Deputy Chief Economist Taylor Marr. “The inflation news is already helping to bring daily mortgage rates down. However, Chair Powell has indicated that inflation would need to slow for several consecutive months before the Fed would lower its target for how high it raises rates next year.”
The report found that fewer people searched for “homes for sale” on Google than this time in 2021. Searches during the week ending November 5 were down 28 percent from a year earlier, but ticked up a point from the previous week. Touring activity as of November 6 was also down 30 percent from the start of the year, compared to a 4 percent increase at the same time last year.
“Still-high home prices are propping up inflation,” Marr continued. “But things are changing fast–faster than the numbers we have would suggest. The employment numbers that came out today don’t reflect this week’s layoffs, and prices of the past month’s closed sales don’t reflect the contracts homebuyers are signing with sellers today. The buyers who remain in this market are likely getting much better deals than the median asking or sale price reflects. The typical home now sells for less than asking, price drops remain at a record high and seller concessions are becoming increasingly common.”