NEWS

Real Estate Market Brief: Easter Impact on Listings and Sales

04/05/2024

The real estate market experienced a slowdown in the growth of new listings this week, with Easter festivities causing some sellers to temporarily step back. High housing prices continue to challenge buyers, though Redfin experts anticipate potential relief in the near future. Here’s all about Easter impact on listings and sils.

Seller Insights

Slowing Growth in New Listings

Recent data indicates a modest 8.4% year-over-year increase in new home listings for the four weeks ending March 31, the smallest rise seen in nearly two months. This slowdown is primarily due to sellers taking a hiatus during the Easter period, which occurred a week earlier in 2024 compared to the previous year.

This trend is under observation to determine whether it’s a short-term anomaly or indicative of a longer-term market shift.

Buyer Trends

Decreased Homebuying Demand

This week also saw a dip in buyer activity. Home tours have increased by 15% since the year’s start but lag behind last year’s 21% uptick.

Mortgage-purchase applications remained steady, with no week-over-week change, and pending home sales saw a 2.8% year-over-year decrease, including a notable drop in the last week of March.

The Easter break contributed to fewer home tours and offers, with the high cost of housing further dampening buyer enthusiasm.

Pricing Dynamics

Current Home Pricing Trends

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The median sale price for homes across the U.S. was reported at $376,223, up 4.7% from last year. Median monthly housing payments are nearing their highest point, just $13 below the peak observed last October, despite current home prices being lower but with mortgage rates nearing 7%, slightly less than last week’s rates.

Future Projections

Potential for Reduced Housing Costs

Chen Zhao, Lead of Economic Research at Redfin, shares an optimistic outlook for prospective buyers. Zhao notes that recent increases in mortgage rates were driven by disappointing economic developments.

However, positive reports on jobs and inflation could prompt the Federal Reserve to cut interest rates in June, potentially reducing mortgage rates. If new listings recover post-Easter, the spring season may witness a softening in home price growth.

For more detailed analysis and economic perspectives on the housing market and mortgage rate influences, visit Redfin’s “From Our Economists” section.