Business & Investment

U.S. home sales record the biggest drop since the pandemic began

December home sales fell 3.6% nationwide, seasonally adjusted, due to record low inventories, according to a new Redfin report released on Friday.

December home sales were seasonally adjusted, down 3.6% nationwide, due to record low inventories, according to a Redfin report.

This is the largest month-on-month decrease since the outbreak of the pandemic. But that’s not because buyers have left the market. Homes were sold quickly and at high prices, but sales declined due to year-on-year declines in inventories.

“There are a lot of homebuyers in the hunt,” said Darryl Fairweather, Chief Economist at Redfin. statement, “But there is nothing for sale.”

Stock shortages in markets across the country have led to the largest decline in monthly sales since May 2020, the securities firm reported. In 82 of the 88 metropolitan areas, the number of new listings decreased from the previous year. Already the highest ever Prices continued to rise nationwide.

Home sales fell 11% year-over-year, down in all but nine of the 88 metropolitan areas tracked by Redfin.

The biggest year-over-year declines in the active list this month were Baton Rouge, Louisiana, San Jose, CA, and San Francisco. Detroit saw a 4% rise on the active list.

“In many markets, buying a home feels like going to a grocery store just to find the shelves exposed,” Fairweather said.

Median selling prices rose 0.4% year-on-year in all markets except Bridgeport, Connecticut. And in December, 43 percent of homes sold above list price. House prices rose 15% year-on-year.

Future outlook

Some economists expect inventories to improve earlier this year as sellers move to the list as mortgage rates continue to rise.

Redfin CEO Glenn Kelman last week He said the high number of housing consultations indicated that the seller was ready to go public.

Several Economist told Inman The market will be slightly colder than in 2021, but when demand stagnates, the market should remain very competitive among buyers.

“We expect to see more buyers and sellers in the market in January, but demand will increase more than supply and will push prices up earlier this year,” Fairweather said. rice field.

Mail Taylor Anderson

U.S. home sales record the biggest drop since the pandemic began U.S. home sales record the biggest drop since the pandemic began

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