Homebuying remains as competitive and expensive as it has always been, as rising mortgage rates make the market less appealing to many would-be sellers.

For the four weeks ended May 1, the percentage of house sellers who reduced their asking price rose to a six-month high of 15%, up from 9% a year earlier. The 5.9 percent increase is the highest yearly gain in Redfin's weekly housing statistics dating back to 2015. During the same time period, the average monthly mortgage payment increased by a record 42 percent to a new high. Although a rising number of sellers are dropping their prices in response to the noticeable dip in homebuyer desire, sellers continue to outnumber buyers, thus the typical property sells at the quickest rate on record and for more than its asking price.

"Homebuyers continue to be squeezed in virtually every way conceivable, which is driving some to pull out of the market," Redfin Chief Economist Daryl Fairweather said. "Unfortunately for buyers looking to discover a bargain as competition cools, sellers are pulling back even quicker, leaving the market firmly in seller's territory." So, even as price decreases become increasingly regular, most properties continue to sell over asking price and in record speed."

Homebuying Activity Leading Indicators:

• Fewer people looked for "homes for sale" on Google—searches for the week ending April 30 were down 7% year on year.
• During the week ending May 1, the seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for house tours and other home-buying services from Redfin agents—was down 1% year on year. It has decreased 10% in the last four weeks, compared to a 1% loss over the same period last year.
• According to house tour technology business ShowingTime, tour activity was 24 percentage points down from the first week of January to the first week of May in 2021.
• Mortgage purchase applications were down 11% year on year, but the seasonally adjusted index gained 4% week on week during the week ending April 29.
• 30-year mortgage rates rose to 5.27 percent in the week ending May 5, the highest level since August 2009.

Key housing market takeaways for 400+ metro regions in the United States:

Unless otherwise specified, the data in this report pertains to the four-week period ending May 1. The Redfin home market data extends back to 2012.

Data based on residences that were listed and/or sold during the time period:

• The typical house selling price increased 17 percent year over year to a record $396,125, the largest gain since August.
• The median asking price of newly listed properties rose 16% year on year to $408,458, a new all-time record.
• At the current 5.27 percent mortgage rate, the monthly mortgage payment on the median asking price property has reached an all-record high of $2,404. This was a 42 percent increase from $1,688 a year ago, when mortgage rates were 2.96 percent.
• Pending home sales were down 4% year on year, the biggest drop since mid-February.
• New listings of properties for sale were down 6% year on year and have been declining since mid-March.
• Year over year, active listings (the number of residences advertised for sale at any moment during the period) decreased by 18%.
• Within the first two weeks on the market, 56 percent of properties that went under contract received an accepted offer, up from 54 percent a year earlier and less than a percentage point lower than the record high set during the four-week period ending March 27.
• 42 percent of properties that went under contract received an accepted offer within one week of going on the market, up from 41 percent a year ago and less than a percentage point lower than the record high set during the four-week period ending March 27.
• Homes that sold were on the market for an all-time low of 15.5 days, down from 21.2 days the previous year.
• A record 56 percent of properties sold over asking price, up from 47 percent the previous year.
• Each week, 3.7 percent of houses for sale had their prices reduced. Overall, 14.9 percent of companies cut their prices in the last four weeks, up from 11.2 percent a month before and 9.1 percent a year ago. This was the greatest percentage since mid-November.
• The average sale-to-list price ratio, which gauges how close properties sell to their asking prices, reached a new record of 102.8 percent. In other words, the average property sold for 2.8 percent more than it was listed for. This was an increase from 101 percent the previous year.

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