In April, the nation’s home-sale prices stabilized, rising 2.8% from 2018 levels, according to new data from Redfin.
This means U.S. home-sale prices reached a median of $307,000 in April, marking a rebound from March’s annual price decline.
Additionally, Redfin’s data determined that only five of the 85 largest metros saw a year-over-year decline in their median price.
This was especially so for San Jose, California, which saw its home prices fall 5% in April. However, other California cities like San Francisco experienced declines as little as 0.1%.
“Homebuyers should take April’s home-price rebound as a cue that the cooldown may be coming to an end,” Redfin Chief Economist Daryl Fairweather said. “The good news is that even though home prices are rising again, mortgage rates remain below last year’s levels and are unlikely to tick back up in a meaningful way this year. While buyers no longer need to feel as much urgency about locking in a low rate before they go back up, buyers who wait too long may face more competition and see home prices rise as a result.”
When it comes to home sales, the report revealed they remained essentially stagnant across the country. However, they did fall on an annual basis in nearly half of the nation’s housing markets.
In fact, Redfin’s analysis indicates home sales fell in 41 of the 85 largest housing markets. Interestingly, the markets that posted the largest and smallest annual sales gains tended to be relatively affordable.
“When mortgage rates go down, as they began to do in late November, it takes a few months for buyers to react,” Fairweather explained. “Expensive metros like Seattle and Los Angeles have been the most sensitive to changes in rates because you have to borrow more to afford a home in those markets. Home sales are still down year over year in these places, but by less than last month, thanks to mortgage rates remaining low.”
The image below highlights April’s home-price growth: