Redfin: Supply Crunch Eases; House Price Growth Slows

(Illustration courtesy of Redfin)

U.S. home prices rose 0.6% in November–the smallest increase since June–as a jump in the number of homes for sale gave buyers more options, the Redfin Home Price Index reported Tuesday.

House prices are up 6.4% from a year ago, the report said.

“It’s a better time to be a homebuyer than it was two months ago,” Redfin Senior Economist Sheharyar Bokhari said. “Buyers today have more options to choose from, which is taking pressure off of home prices.”

Bokhari noted mortgage rates dropped below 7% last week for the first time since August, shaving hundreds of dollars off monthly payments. “That news seems to have lured more sellers to the market, which should further improve homebuying conditions in the new year,” he said.  

New listings climbed 1.3% month over month in November to the highest level in over a year on a seasonally adjusted basis as homeowners got tired of waiting on the sidelines, providing relief to buyers who have been grappling with a historic shortage of homes for sale. Pending sales also rose, increasing 2% month over month to the highest level in a year.

“This month, new listings have been climbing even faster,” the report said. “On the buy-side, mortgage purchase applications have been rising on a seasonally adjusted basis as mortgage rates have come down.”