Published by FOX Business | August 26, 2022
New listings plunged 15% year-over-year during the four week period ending Aug. 21
A growing number of home sellers are becoming even more reluctant to list their properties on the market as asking prices fall in reaction to waning demand.
New listings for homes for sale dropped 15% during the four weeks ending on Aug. 21 compared to the same time a year ago, according to a new Redfin report. This marks the biggest drop since the coronavirus pandemic first gripped the world, according to the brokerage.
The supply of for-sale homes fell 0.6% from the prior four-week period, according to Redfin data.
Redfin attributed the drop in new listings, in part, “to reduced demand and falling prices as there are fewer buyers in the market due to rising mortgage rates and economic uncertainty.”
According to mortgage buyer Freddie Mac, the 30-year fixed mortgage rate rose to an average 5.55% as of Aug. 25, up from the average of 5.13% reported a week prior. A year ago, the 30-year fixed mortgage rate averaged 2.87%.
Rising mortgage rates, which increase the cost of homeownership, are driving more people away from the housing market.