The spring housing market is off to yet another record-breaking start after March homes sold well above list prices and at their fastest pace ever, according to Redfin. The median home-sale price rose 6.2% during March, the fastest seasonally-adjusted month-over-month gain since 2013, but as affordability becomes harder to find and more buyers are priced out, a market slowdown could be just around the corner, experts say.
Seasonally-adjusted active listings dropped 13%year-over-year to a new all-time low in March, the latest blow to the home building sector after years of supply chain disruptions hindering new home construction. As a lack of inventory and rising mortgage rates become status quo for the spring market, buyers are backing out and waiting for conditions to improve.
“Although pricey coastal markets began showing early signs of a slowdown in late March, nationwide sales data for the full month reflects the hottest March market on record, since homes that sold last month mostly went under contract in February,” said Redfin chief economist Daryl Fairweather. “We expect the combination of surging mortgage rates and record-high home prices to cause more homebuyers to drop out of the market. Unfortunately, homeowners are turning their back on the market too. Instead of being motivated to list before prices weaken, potential home sellers may be choosing to wait-out the impending market cooldown.”
Advertisement
Related Stories
Demographics
Gen Z Ranks Housing Affordability as Biggest Concern Ahead of 2024 Presidential Election
While the issue is most important to young voters, 80% of Americans rank housing affordability as a top priority when considering who will have their vote
Housing Markets
14 US Housing Markets Where Inventory Is Returning to Pre-Pandemic Levels
Many of these markets experienced strong population growth during the onset of the COVID-19 pandemic
Financing
10 States Where Shopping Around for a Mortgage Really Pays Off
In California, homebuyers could see savings of more than $130,000 over the lifetime of their loans