“Prices keep rising despite declining sales because there aren’t enough homes on the market,” the report stated, noting that new listings were up about 8% year-over-year but inventory remained lower than typical spring levels.
High housing costs are also taking a toll, with the median monthly mortgage payment reaching $2,854 – just $20 shy of April’s all-time high – even as average mortgage rates dipped to 7.02% from 7.22% at the start of May.
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“Move-up buyers feel stuck because they’re ready for their next house, but it just doesn’t make financial sense to sell with current interest rates so high,” said Sam Brinton, a Redfin agent in Salt Lake City. “The homeowners listing right now are often doing so because they need to: family emergencies, having a baby and needing more space.”
Brinton advised buyers to be prepared, as “many sellers are willing to negotiate” if homes don’t have competing offers, suggesting offering below asking price or requesting concessions.
