Home listings plummeted to record low in May: Redfin

The number of homes for sale in the U.S. plummeted 7.1% to a record low in May as borrowing rates continue to trap homeowners, according to a new report from Redfin.

In May, the pool of homes sat at 1.4 million on a seasonally adjusted basis, marking the lowest level since 2012, when Redfin began tracking the data. May also marked the first annual decline in over a year, the tech-powered real estate agency reported.

In May 2019, prior to when the pandemic upended the housing market, there were 2.2 million homes for sale. That means the housing supply in May 2023 was down 36.6% compared with pre-pandemic levels.

MORTGAGE RATES EASE FOR THIRD STRAIGHT WEEK

New home listings, in particular, slipped 25.2% year over year to the third-lowest level on record on a seasonally adjusted basis.

According to Redfin, nearly every homeowner has a mortgage rate under 6%. In May, the rate on the 30-year-fixed mortgage averaged 6.43%, up from the 5.23% reported a year earlier.

Although potential homebuyers think it's a bad time to purchase a home with high borrowing rates, Fairweather cautioned that when rates do fall, "many buyers waiting on the sidelines could jump back in."

This would cause more bidding wars, pumping up prices and ultimately, "offsetting some or all of the benefit of lower interest rates," Fairweather said.

https://www.foxbusiness.com/lifestyle/home-listings-plummeted-to-record-low-in-may