During the four weeks ending April 23, the number of newly listed homes for sale nationwide decreased by 22.4% compared to the previous year, representing one of the largest declines since the beginning of the pandemic. Homeowners are choosing to stay put in their current homes to retain their low mortgage rates, which have been increasing for the second consecutive week, and because they are facing challenges in finding another suitable property to purchase.
This shortage of new listings is causing an unexpected reduction in the overall number of homes available for purchase. The insufficient inventory is also contributing to a quicker selling time for some properties, with almost half of homes being sold within two weeks. This percentage is the highest it has been in nearly a year and has risen progressively throughout April, which is unusual for this time of year. Despite elevated mortgage rates deterring some buyers, pending home sales have declined by 17% year over year.
Recent data indicates the state of homebuying activity. During the week ending April 27, the average 30-year fixed mortgage rates increased slightly to 6.43%, marking the second consecutive week of a small rise after five weeks of declines. On April 27, the daily average rate was 6.67%.
In the week ending April 21, mortgage-purchase applications rose 5% from the previous week after being seasonally adjusted, but fell 28% from the same period the previous year.
During the week ending April 23, Google searches for "homes for sale" declined by around 8% from the previous month during the week ending April 22, and dropped about 20% compared to the same period the previous year. According to ShowingTime, a home tour technology firm, touring activity as of April 22 rose about 28% from the beginning of the year, which is higher than the 17% increase observed at the same time last year.
If you have a home that you need to sell or one you are considering selling, it is still a great time to put it on the market. We are still seeing many homes receive multiple offers. Most homes are selling at, or above asking price with very few seller concessions in the Fort Meade area. Even though mortgage rates have edged up into the 6's, they are still historically low, so Buyers are looking for nice homes that are priced correctly.
