Redfin Reports Record-High Costs, Economic Unease Are Stunting This Spring's Homebuying Season

With new listings rising and pending sales declining, Redfin agents suggest sellers set their asking price fairly from the start to attract buyers and avoid price drops

(NASDAQ:RDFN) — The median U.S. monthly housing payment hit an all-time high of $2,868 during the four weeks ending May 4, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That's due to two key factors: Home-sale prices are up 1.8% year over year, and the weekly average mortgage rate is 6.76%, down slightly from mid-April but elevated well above pandemic-era lows.

Those record-high housing costs, along with widespread economic uncertainty, are stunting this spring's homebuying season. Mortgage-purchase applications increased last week, but they're down 6% month over month. Additionally, pending home sales are down 3.9% year over year, the biggest decline in three months. A holiday effect is also pushing down sales; Easter fell into this year's four-week period, but not last year's comparable period.

Still, some house hunters are hitting the pavement. Home tours are rising faster this year than last year, according to ShowingTime data, and Redfin agents in some parts of the country report competition for turnkey homes in desirable neighborhoods.

"April is typically a busy month, but spring is off to a slow start this year," said Nicole Stewart, a Redfin Premier agent in Boise, ID. "There are still some prospective buyers who believe mortgage rates will fall soon, and they're waiting for that to happen. Costs are so high that buyers who are moving forward with a purchase want the home to be perfect; they're asking sellers for more repairs and negotiating more than usual. The move-in ready, beautiful homes that are relatively affordable are the exceptions: They're selling quickly, sometimes with multiple offers."

On the selling side, new listings are up 5.5% year over year. And the total number of homes for sale is increasing more, up 13.6% year over year, because sales are slow. Redfin agents suggest sellers set their asking price fairly from the start to attract buyers and avoid price drops.

For Redfin economists' takes on the housing market, please visit Redfin's "From Our Economists" page.

Leading indicators

Key housing-market data

To view the full report, including charts, please visit:

https://www.redfin.com/news/housing-market-update-record-high-housing-costs-sales-decline

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin's subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email [email protected]. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250508223354/en/

Contact Redfin

Redfin Journalist Services:

Tana Kelley

[email protected]