Home prices in the United States have declined year over year for the first time in more than three years. The median price of homes sold reached $389,601 in the four weeks through October 25, down 0.1% from the same period last year, Redfin reported. This was the second consecutive weekly decline after three years of rising prices.
The data show that buyers continue to retreat from the market despite a slight decline in mortgage rates. Pending sales fell 1.8% for the week to 276,352 transactions, while the year-over-year decline was 15.9%. This is the lowest level in Redfin’s records, which began in 2021. A decline was recorded in all 50 of the largest metropolitan areas for the third consecutive week.
“Nationwide, there are hundreds of thousands more sellers than buyers, giving buyers more negotiating power than they’ve had in over a decade,” Redfin said in its analysis.
Mortgages Remain the Main Obstacle
The monthly mortgage payment for a typical buyer reached $2,786, or 10.7% more than a year earlier. This is the second-highest level in the company’s records. The average weekly mortgage rate was 7.32%, compared with 7.4% a week earlier, but remained close to its highest level in the past three years.
Supply is gradually increasing, although new listings are declining. Their number fell 0.6% for the week to 352,421, the lowest level since the beginning of the year. At the same time, active listings increased 0.3% for the week and 2.2% year over year to around 1.51 million homes.
National supply now covers 4.5 months, compared with 4 months a year earlier. The share of listings with a price reduction rose to 21.5% from 20.9% a year ago, while the median time to sell increased to 50 days. Only 27.5% of homes went under contract within two weeks of being listed on the market, compared with 28.5% a year earlier.
Seattle Is the Weakest Major Market
Seattle recorded the largest year-over-year decline in pending sales among the leading metropolitan areas in the United States, at 31.6%. It was followed by Atlanta at 25.9%, San Diego at 25.3%, Las Vegas at 22.7% and Denver at 22.3%.
Seattle also had the sharpest decline in the median sale price, down 5.1% year over year. Declines were also recorded in San Jose, down 4.9%, Austin, down 4.6%, Kansas City, down 4.3%, and Nashville, down 3.3%. At the opposite end of the spectrum was San Francisco, where prices rose 15%. Price increases were also recorded in New Brunswick, Pittsburgh, Montgomery County, Pennsylvania, and Cleveland.
The data outline a market in which growing supply is not automatically leading to more transactions. Lower prices offer some room for negotiation, but high financing costs continue to keep a significant share of buyers out of the market.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg