Following a year and a half of increased homebuyer competition, bidding wars, and record-low inventory, a new report finds the typical home is now selling for less than its asking price.
The days of Boston condo bidding wars are fading away.
For the first time in more than 17 months, the average home sold for under its list price, for the four weeks ended Aug. 28, when the average sale-to-list ratio fell below 100%,
Home prices are coming down and demand is still falling, mostly because of another spike in mortgage rates as they hit their highest since June.
Yes, mortgage applications fell 23% from last year (and were down 2% week over week) as the 30-year mortgage rate rose to 5.66% for the week ended Sept. 1, down from this year’s 5.81% high but up from 3.11% at the start of the year. Mortgage applications, pending sales, new listings, and overall inventory had large declines last month.
On Google searches for “homes for sale” during the week ended Aug. 27, down 26% from last year. Its Homebuyer Demand Index, which measures requests for tours and other services, rose 15% from June’s 2022 low but was down 3.22% from January.
In the four weeks ended Aug. 28, active listings rose 4.2% year over year but fell 0.9% from the previous four weeks. The median asking price rose 9% from 2021 to $379,194, down 5.8% from May’s all-time high.