Housing Market Shifts: Median Home Prices Decline, Sellers Adjust to Falling Demand and Rising Mortgage Rates

San Jose, California United States of America
6.4% of listings experienced a reduction
Age of inventory rose to a median of 46 days
Competition remains fierce for well-maintained and well-priced listings
Median asking price for homes declined for the first time in six months in May
Prices dropped an average of $3,000 or 0.71%
Surge in new listings coming to market is being met with resistance from buyers due to overpricing
Housing Market Shifts: Median Home Prices Decline, Sellers Adjust to Falling Demand and Rising Mortgage Rates

In recent weeks, the housing market has seen a significant shift as sellers adjust to falling demand and rising mortgage rates. According to multiple reports, the median asking price for homes declined for the first time in six months in May, with prices dropping an average of $3,000 or 0.71%. This trend was driven by a surge in price reductions from sellers trying to attract buyers.

The highest rate of home price cuts since November 2022 occurred during this period, with 6.4% of listings experiencing a reduction. The age of inventory also rose for the first time in eight months to a median of 46 days, indicating that new listing growth has slowed.

These trends are being observed across various markets, including California and Texas. In San Jose, median home prices saw double-digit annual increases in May for pending sales and new listings. However, Houston and West Palm Beach experienced the most significant drops in pending sales.

Despite these changes, competition remains fierce for well-maintained and well-priced listings. For instance, in the Bay Area, homes priced under $1 million are still receiving multiple offers from buyers looking for family-friendly homes or having a baby.

However, the surge in new listings coming to market is being met with resistance from buyers due to overpricing. The median price per square foot on new listings is at record highs, leading to a pricing imbalance and an increasing number of delistings and price drops.

The housing market's affordability issues are not limited to the US. In India, for example, Prime Minister Narendra Modi is expected to win a landslide election victory despite concerns over rising inflation and housing costs.

As the market continues to evolve, it remains crucial for buyers and sellers alike to stay informed about local trends and pricing dynamics.


Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image

Confidence

91%

Doubts
  • Are there any specific reasons why median home prices declined in May?
  • What is the current state of inventory levels and new listings in other markets?

Sources

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Homebuyers Are Starting to Revolt Over Steep Prices Across US

Yahoo Finance Prashant Gopal Saturday, 01 June 2024 18:09
  • Unique Points
    • The US housing market is experiencing a decrease in buyer interest due to higher mortgage rates.
    • In some markets, such as Houston, West Palm Beach, and Atlanta, contract signings were down by at least 14% compared to the previous year.
    • Homes in the booming suburbs north of Nashville used to sell quickly but now developers are having trouble finding buyers and some have had to pull homes off the market.
    • The number of active single-family home listings in the Punta Gorda area has doubled over the past year, while the median sale price fell by almost $30,000.
    • Price growth could slow more broadly in the coming months but any deceleration is likely to be slow due to pent-up demand from the Millennial generation.
  • Accuracy
    • The median sale price of a home in the US was up 4.3% from a year earlier to a record $390,613.
    • Sales of new homes and contracts to purchase existing homes have both decreased compared to last year.
    • The number of active single-family home listings in the Punta Gorda area has doubled over the past year.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Top real estate economist offers one word to describe the housing market: Unaffordable

Fortune Media Inc. Alena Botros Thursday, 30 May 2024 00:00
  • Unique Points
    • Home prices rose 6.5% in March compared to a year earlier (not mentioned in other articles)
    • Existing home sales fell to an almost 30-year low last year and are still falling (not mentioned in other articles)
    • Mortgage rates have skyrocketed from their pandemic lows, causing a decrease in existing supply due to homeowners unwilling to sell for higher mortgage rates (not mentioned in other articles with this level of detail)
  • Accuracy
    • Home prices rose 6.5% in March compared to a year earlier
    • Home prices are hitting record highs but the pace of gains should decelerate with more supply
    • The median sale price of a home in the US was up 4.3% from a year earlier to a record $390,613
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Price Drops Hit Highest Level in 18 Months As High Rates Dampen Buyer Demand

Redfin Corporation Dana Anderson Thursday, 30 May 2024 12:00
  • Unique Points
    • 6.4% of home sellers cut their asking price during the four weeks ending May 26, the highest share since November 2022
    • The median sale price dropped roughly $3,000 to $416,623 in the last week, the first decline in six months
    • Age of inventory started rising year over year in May for the first time in eight months, hitting a median of 46 days
  • Accuracy
    • The median sale price rose to another record high, pricing out some buyers
    • The median asking price dropped roughly $3,000 to $416,623 in the last week
  • Deception (80%)
    The article contains some editorializing and selective reporting. The author states that 'More home sellers are cutting their asking price' and 'sale-price growth could soften in the coming months'. However, she also reports that the median sale price is at an all-time high, which contradicts her earlier statement about sellers cutting prices. This selective reporting creates a misleading impression for readers. Additionally, the author quotes Christine Chang making suggestions for buyers to consider certain types of homes and neighborhoods. While this information may be useful to some readers, it is not directly related to the deception in the article and should not be considered when determining the score.
    • More home sellers are cutting their asking price, suggesting sale-price growth could soften in the coming months.
    • People who are buying right now are typically doing so because they’re having a baby or looking for a more family friendly home.
    • The median sale price is up 4.3% year over year to another record high, though sale prices are a lagging indicator because they’re typically negotiated at least a month before a deal closes.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Sellers cut prices at record pace to combat falling demand

Inman Thursday, 30 May 2024 00:00
  • Unique Points
    • Sellers are adjusting their price expectations due to sluggish homebuyer activity, with the median asking price declining for the first time in six months to $416,000.
    • Weakening homebuyer demand led to the highest rate of home price cuts since November 2022.
    • 6.4 percent of listings experienced a price reduction in May, causing median asking prices to decline $3,000 or 0.71% to $416,623.
    • The age of inventory rose for the first time in eight months to a median of 46 days.
    • New listing growth has slowed over the past few weeks.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Skyrocketing Delistings and the Pricing Imbalance — Mike DelPrete - Real Estate Tech Strategist

Mike DelPrete - Real Estate Tech Strategist Mike DelPrete Wednesday, 29 May 2024 14:34
  • Unique Points
    • The amount of homes listed for sale and then delisted is reaching all-time highs.
    • Rising delistings indicate a pricing imbalance with asking prices higher than buyers’ willingness to pay.
    • New listings are being priced very high, with median price per square foot at record highs.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication