U.S. home-sale prices have reached a new all-time high, hitting $396,500 during the four weeks ending June 15, according to the online real estate company Redfin.
This price marks a 1.1 percent increase year over year, aligning with recent trends of incremental price rises, although prices have dropped about 5 percent since the beginning of the year.
In Chicago, the real estate market is experiencing notable shifts, characterized as a buyer’s market due to a surge in new residential real estate listings.
The city reported the second-highest year-over-year increases in pending sales in the country, growing by 5 percent.
Redfin highlights a significant imbalance in the housing market, with approximately 500,000 more homes available for sale than there are buyers.
This situation is encouraging sellers to be more flexible and open to negotiations.
Though the median asking price for homes in Chicago was $422,238, the median sale price fell short by nearly $26,000, indicating that buyers are seeking bargains in a market filled with options.
New listings of homes for sale have increased by 4.4 percent year over year, while total listings have risen by 14.5 percent.
Conversely, pending sales are down 1.5 percent compared to the previous year, and mortgage applications have seen a 3 percent decline week over week.
This trend suggests that high prices are making home-buying unaffordable for many prospective buyers, as noted by Redfin.
Kelly Connally, a Redfin Premier agent in Tulsa, Oklahoma, emphasizes the importance of strategic pricing for sellers, cautioning that homes priced too high risk sitting on the market, which invites buyer negotiations.
She advises that homes should be in excellent condition and ready for any repair requests following inspections.
However, properties in desirable locations that are well-maintained continue to perform well, often selling at or even above their asking prices.
Redfin also indicates that the current mismatch between housing supply and demand is likely to lead to a national decline in home-sale prices by year-end.
Metropolitan areas showing the highest year-over-year increases in median sale prices include Philadelphia, New Brunswick, New Jersey, Pittsburgh, Nassau County, New York, and New York City, with increases ranging from 4 to 5.5 percent.
On the other hand, regions like Oakland, California, and Jacksonville, Florida, are grappling with significant declines in median sale prices, plunging by 5.9 percent and 3.9 percent, respectively.
The data also reveals trends in pending sales, with notable year-over-year increases in cities like Cincinnati and Dallas, while San Jose, California, experienced the most substantial decrease at 18.5 percent.
The year-over-year patterns in new listings also show Warren, Michigan, leading with a 14 percent increase, while Tampa, Florida, experienced the largest decrease at 11.5 percent.
Overall, the real estate market is in a state of flux, driven by various factors affecting both buyers and sellers as they navigate the complexities of current economic conditions.
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