RDFN - Home prices fall 3% in March in biggest annual decline since 2012 - Redfin

2023-04-19 13:29:13 ET

The median U.S. home price fell 3.3% in March , marking the biggest year-over-year decline since 2012, real estate brokerage Redfin ( NASDAQ: RDFN ) reported on Wednesday.

Pandemic boomtowns and pricier Bay Area markets led the declines in home prices, which shot up in recent years and are now retreating after many buyers were priced out.

Pending home sales dropped 26.6% in March on a seasonally-adjusted basis to the lowest level since April 2020. "Things got really quiet after the Silicon Valley Bank collapse," said Boise Redfin real estate agent Shauna Pendleton. "That killed buyer momentum and brought us back to where we were last year when mortgage rates shot up."

New listings fell 23.3% Y/Y in March to a record low aside from the pandemic's onset on a seasonally-adjusted basis. "There are some signs of the typical seasonal uptick - homes are selling faster than in winter - but that's partly because there are so few new listings," said Redfin Chief Economist Daryl Fairweather.

Separately, Re/Max ( RMAX ) said home sales in March jumped 37.7% sequentially, signaling the start of the peak spring and summer seasons. Median sales price was down 2% Y/Y.

Earlier, mortgage applications fell 8.8% last week amid affordability challenges and limited for-sale inventory.

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