The median home price in the US fell 3.3% in March (after a 1.2% decline in February) – marking the biggest year-over-year price decline since 2012, according to a new report. Redfin.
The largest decline from a year ago was Boise, ID -15.4%, followed by Austin, TX (-13.7%), Sacramento, CA (-11.9%), San Jose, CA (-10.5%) and Oakland, CA (-9.7%). ).
Boise Redfin real estate agent Shauna Pendleton said in the report, “I was constantly busy in the fall, but things really quieted down after the collapse of Silicon Valley Bank in March.” “There’s a fear that everything will come crashing down. There are bank failures, inflation, fears of a recession, mortgage-rate volatility, the war in Ukraine, spy balloons—some people are wondering if they should pull their money out of the bank and park it on a new home. Safe rather than spend.”
Related: While rent prices across the country fell in March, Manhattan hit a new record high
Of the homes sold in March in the U.S., only 28.5% sold for more than the final listing price – a sharp decline from 54.1% in March 2022.
Rising Mortgage rates That has caused both buyers and sellers to hold back, and new listings fell 23.3% in March from a year ago. As fewer homeowners want to sell, it fuels a shortage of inventory, further contributing to a decline in home sales.
“One of my sellers recently received multiple offers on his home, but pulled the listing from the market when he found out his interest rate was doubling,” Nashville Redfin real estate agent Jennifer Bowers said in the report. “There are many homeowners who don’t want to give up their 2.5% or 3% rate for a 6.5% rate. Both buyers and sellers are having a hard time adjusting because rates are going up and down so quickly.”
Related: Some banks lost an average of $301 on every mortgage they loaned in 2022