While the number of pending home sales is at an almost four-year high, the numbers tell a more complicated story for agents in the field.
Pending home sales are at their highest level in nearly four years, according to new data from Redfin, but the numbers tell a more complicated story for agents in the field.
Redfin said open sales rose a seasonally adjusted 7.7% year over year in the four weeks ending May 3, the highest since September 2022, helped by a brief decline in mortgage rates and inventory near five-year highs.
The weekly average for 30-year fixed rates was 6.23%, down from a six-month high of 6.46% two weeks ago, and the median monthly home payment was $2,606, down 2.2% from a year ago.
But the buyers who appear on the sidelines aren’t exactly fighting over the house. Only 26.4% of homes sold for above list price, the lowest percentage for this period in at least five years, and the average sales price-to-list price ratio was 98.7%, down from 99% a year ago.
The typical home was on the market for 43 days, three days longer than a year ago. Almost 18.8% of active listings experienced a decline in price.
Supply is also part of the problem. Inventory is 3.5 months, below the 4-5 months considered a balanced market, but inventory is increasing. Redfin suggested that the spike in pending sales may reflect a delayed arrival of the spring season rather than a sustained change, meaning the window for sellers may be narrower than the headline numbers suggest.
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