{"id":173401,"date":"2023-01-06T08:58:58","date_gmt":"2023-01-06T15:58:58","guid":{"rendered":"https:\/\/inbusinessphx.com\/?p=173401"},"modified":"2023-01-06T08:58:58","modified_gmt":"2023-01-06T15:58:58","slug":"pending-sales-drop-to-lowest-level-since-at-least-2015-prices-fell-2-4-in-metro-phoenix","status":"publish","type":"post","link":"https:\/\/staging.inbusinessphx.com\/?p=173401","title":{"rendered":"Pending Home Sales Drop to Lowest Level since at least 2015, Prices Fell 2.4% in Metro Phoenix"},"content":{"rendered":"
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Pending U.S. home sales dropped 32% year over year to their lowest level since at least 2015 during the four weeks ending January 1, according to a new report<\/a> from Redfin<\/a>, the technology-powered real estate brokerage.<\/div>\n<\/header>\n
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The biggest declines were in pandemic homebuying hotspots Las Vegas, Phoenix and Austin, which each saw pending sales plummet more than 50%. The housing market fizzled out at the end of 2022 due to 6%-plus mortgage rates, a looming recession, record-low new listings, extreme winter weather and the typical holiday slowdown.<\/p>\n

Signals of early-stage demand are mixed. Redfin\u2019s seasonally adjusted Homebuyer Demand Index\u2013a measure of tour requests and other buying services from Redfin agents\u2013was up 8% from two weeks earlier. Mortgage-purchase applications fell about 12%, though the double-digit drop was partly due to severe late-December storms hitting nearly every part of the U.S.<\/p>\n

\u201cTwo categories of buyers are starting their search right now: First-timers hoping prices and competition are more manageable than they have been over the last few years, and returning buyers who took a break after losing out on multiple homes during the pandemic bidding-war frenzy,\u201d said Seattle Redfin agent Shoshana Godwin. \u201cThey should be able to take their time and find a home for a slightly lower price than last year, but the market will likely become more competitive over the next few months. I expect new listings to remain scarce as homeowners hold onto low interest rates while the pool of determined buyers circle the few homes that are available.\u201d<\/p>\n

Home prices fell from a year earlier in 19 of the 50 most populous U.S. metros<\/b><\/p>\n

The typical U.S. home sold for $350,000 during the four weeks ending January 1. That\u2019s up just 0.5% from a year earlier, slightly slower than the 0.7% growth we saw at the beginning of the pandemic, when the market nearly ground to a halt. Prices were down 10% from the June peak. On a metro level, home-sale prices fell year over year in 19 of the 50 most populous U.S. metros during the four weeks ending January 1. By comparison, just 10 metros saw price declines a month earlier.<\/p>\n

Prices fell 10.4% year over year in San Francisco<\/a>, 6% in Sacramento<\/a>, 5.6% in San Jose, CA<\/a>, 5.4% in Los Angeles<\/a>, 4.6% in Detroit<\/a>, 4.4% in Oakland, CA<\/a>, 4.2% in Seattle<\/a>, 3.9% in Pittsburgh<\/a>, 2.9% in Austin<\/a>, 2.8% in New York<\/a>, 2.4% in Phoenix<\/a> <\/strong>and 2.2% in Boston<\/a>. They fell 2% or less in Anaheim, CA<\/a>, Chicago<\/a>, Riverside, CA<\/a>, Washington, D.C.<\/a>, San Diego<\/a>, Portland, OR<\/a> and Newark, NJ<\/a>.<\/p>\n

This marks the biggest year-over-year drop for San Francisco prices since at least 2015.<\/p>\n

Leading indicators of homebuying activity:<\/b><\/p>\n