Home prices across the country saw their biggest annual decline in more than a decade last month — falling by nearly $18,000, according to a report released Monday.
The report from real estate brokerage Redfin found that the biggest drop in prices was seen in expensive markets in California and in boomtowns during the pandemic, such as Boise, Idaho, and Austin, Texas.
Median sales prices in the two cities, where remote workers once flocked for lower prices and more space, fell to $80,000.
Homes in Oakland, Calif., experienced the largest percentage drop in home prices, falling 16.1 percent or $174,500 from a year ago.
Overall, the median prices decreased by 45 out of more than 90 meters analyzed by Redfin.
Prices fell largely due to fluctuating mortgage rates of more than 6 percent after reaching historic lows during the pandemic.
The 30-year fixed rate mortgage rose to 6.39 percent last week after standing at 5.25 percent at the same time last year.
“High mortgage rates keep buyers from buying and would-be sellers from selling. And because sellers aren’t selling, outside buyers have limited options,” said Redfin Chief Economist Daryl Fairweather in a statement.
“Home prices have weakened due to sluggish home-buying demand, but a lack of homes for sale has kept them from falling as they did during the Great Recession,” he continued.
Fairweather added that prices are rising in some areas because the pool of buyers and available inventory is limited.
Nearly a third of homes sold in April were purchased for more than the final list price.
Meanwhile, new listings fell 26.1% year over year on a seasonally adjusted basis in April alongside a decline in home sales.
Separate data showed that existing home sales — completed transactions that include single-family homes, town homes, condominiums and co-ops — fell 3.4 percent from March to a quarter. aka an annualized annual rate of 4.28 million units.
Year-over-year sales fell 23.2 percent, data from The National Association of Realtors showed. Total housing inventory rose 7.2 percent month-on-month to 1.04 million units.
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