Boston home prices fell for the first time since 2015 as Boston condo buyers are taking their time deciding on a home purchase, causing homes to linger on the market longer, according to a new Redfin report.
That lingering is increasing inventory, something buyers are finding very beneficial right now. During the four weeks ended Dec. 25, the total number of homes available rose 18% from 2021, the largest increase since 2015.
According to the report, a typical home was on the market for 40 days before selling. That was double May’s record low of 18 days and was the slowest sales pace since January 2021.
Despite rising inventory levels, new listings fell double digits across the country. Redfin cites homes taking longer to sell, increased mortgage rates, economic uncertainties and the holiday slowdown as the cause. During the last week of December, the average 30-year mortgage rate rose to 6.42%.
Redfin deputy chief economist Taylor Marr said we’ll know more about the direction of mortgage rates and whether the recent uptick in the early-stage demand will translate into sales once we’re settled in the new year.
During the four weeks ended Dec. 25, home prices fell from 2021 in 17 of the 50 most populous U.S. metros, the report found. There was a 9% year-over-year drop in prices in San Francisco, a 6.5% drop in San Jose, and down 6% in Los Angeles, 4.5% in Detroit, 4.4% in Pittsburgh, 3.7% in Sacramento, 3.6% in Oakland, California, and 2.3% in Austin, Texas.
Home prices fell 2% or less in New York, Seattle, Anaheim, California, Phoenix, Chicago, Newark, New Jersey, Riverside, California, Boston and Washington, D.C. While this marked the first time Boston prices fell since 2015, it’s also the first time prices in Washington D.C. fell since 2016.
Thirty-year mortgage rates rose to 6.42% for the week ending Dec. 29, marking the first increase after six weeks of declines. The daily average, according to the report, was 6.55% on Dec. 29….