For the first time in almost 12 months, the average U.S. home is selling above its asking price, as the average sale-to-list price ratio hit 100.1% for the four weeks ended July 2, according to a new Redfin report.

The report also found the median home-sale price during that period was down only $1,000 (-0.3%) from last year’s record high prices, as low inventory and steady demand are keeping prices aloft. 

New listings were down 25% from last year, and the total number of homes for sale were down nearly 12%, as homeowners continued to stay put and hold on to their low mortgage rates. That decline in inventory was the biggest since April 2022 and was essentially flat from June, contravening the typical monthly increases of this time of year.

Homebuyer demand is picking up, according to Redfin’s Homebuyer Index, and we’ve seen when there’s low inventory and high prices, the homebuyer market becomes quite competitive. 

During the four weeks ended July 2, Redfin’s Homebuyer Demand Index increased 4% from the previous month and was near its highest level in more than a year.

Redfin found more Google searches for “homes for sale” during the week ended July 1, up 5% from June but down 9% from last year. 

Thirty-year mortgage rates hit 7.08% in the week ended June 29, down slightly from a half-year high of 7.14% in May. During that same period, the 30-year fixed mortgage rate was 6.71%, up slightly from the previous week but down slightly from the eight-month high of 6.79% at the beginning of June. 

The average monthly mortgage payment on a median-priced home was $2,622 at 6.71%, for the week ended June 29, down slightly from the record high earlier in that month but up 14% from last year. 

Pending home sales fell 14.2% from last year, continuing the double-digit declines we’ve seen for more than a year.