Americans are heading to the market
The number of sales transactions in progress on the U.S. real estate market rose by 9,6% year-over-year, reaching its highest level since September 2022.
Data from Redfin show that seasonal sales increased in all major U.S. metropolitan areas except Houston, Detroit, and Seattle.
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Moreover, the number of mortgage applications for property purchases rose by 4% week-over-week.
The median apartment sale price increased by 2,2% year-over-year over the four weeks ending May 10, marking the second largest rise in the past seven months.
“The real estate market has been decidedly buyer-friendly for at least a year, but we may have already passed the peak of the buyer’s market. The gap between sellers and buyers has narrowed and could shrink further in the coming months if demand for home purchases continues to accelerate,” the report said.
Chen Zhao, Redfin’s director of economic research, warned that “a larger number of buyers in the market means more competition, which could trigger a bid war, raise prices, and make it harder to find the perfect home.”
“Home seekers should keep this in mind: with more buyers entering the market, they may lose some of their negotiating power,” she said.
“Although mortgage rates have risen slightly in recent weeks, determined buyers may consider acting sooner rather than later,” she added.
Read also: Market burst. “2026 looks like a good year to buy an apartment.”
Source: Redfin.
See also: Brutal real estate data. Apartment sales suddenly fell by almost 20%
Fed in transition. What next for interest rates?
As Redfin experts emphasize, property sellers are brimming with optimism in a buyer-friendly market.
“The number of new listings fell by 1,6% year-over-year, marking the third consecutive week of declines. Some potential sellers are waiting to see if rising demand will drive further price increases later in the year, while others remain reluctant to give up the exceptionally low mortgage rates,” we read.
“And although the labor market is strengthening, some homeowners still hesitate to list their properties for sale in a situation where the economy seems uncertain due to the ongoing war with Iran and rising oil prices,” the report added.
The report indicates that “more buyers are entering the market, partly due to improved labor market conditions.”
“Some Americans feel more confident making a serious purchase. In April mortgage rates fell for three consecutive weeks, further boosting confidence among home seekers, although the average daily mortgage rate rose on Wednesday to 6.57%, approaching its highest level since August,” the report said.
The data show that spring is usually the “hottest” period in the real estate market, this time coinciding with the change in the U.S. central bank’s chair.
That’s Kevin Warsh, who will soon replace Jerome Powell, and he will make the next Fed decision on interest rates after officially being sworn in as Fed Chair.
Read more in the article: Dollar and euro rates before the change. Will Warsh cut rates? Expert: “Straight path to disaster.”
Source: Trading Economics.
Read also: Real estate market slowdown. Home seekers “should know this” – experts say.
See also: Real estate no longer falling. 40,000 sales agreements were canceled this month, apartments linger on the market for 60 days.
Source: Redfin.
