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Online real estate brokerage Redfin (NASDAQ:RDFN) reported Thursday that U.S. home sales prices hit a new record high for the ninth consecutive week, even as rising mortgage rates continue to stifle homebuying demand.
The median U.S. home sales price hit a record high of $397,482 for the four weeks ending July 7. This was up 4.7% from a year ago and the largest annual increase in the past four months. Note that RDFN's weekly housing market data goes back to 2015.
Historically low inventory continues to be one of the primary drivers of rising home prices, offsetting the negative impact of high mortgage rates on home sales and mortgage purchase applications.
Looking ahead, however, Redfin (RDFN) has identified some signs that home price growth may soon lose steam. For example, the typical home is selling for 0.4% below the asking price, marking the first time that a typical home has sold below list price in early July since 2020. Also, only 32% of homes are selling for above asking price, down from 36% a year ago and the lowest percentage for this time of year since 2020.
Another sign that price growth may lose steam in the coming months is that inventory, while historically low, is still increasing year-over-year: New listings are up 7.3% year-over-year, and the total number of homes for sale is up 18.3%.
Redfin's (RDFN) national index includes data for over 400 U.S. metro areas and is based on homes listed and/or sold during the period.