The extreme dearth of new homes on the market is a key component keeping home sale prices from falling further than they already have, according to a new report.

“New listings of homes for sale fell 22.4% nationwide from a year earlier during the four weeks ending April 23, one of the biggest declines since the start of the pandemic,” the report released Friday by Redfin reads.

While homeowners are staying put out of reluctance to lock in higher mortgage rates — resulting in a lack of inventory of homes for sale, the few homes on the market are drawing competition and selling quickly — preventing home prices from dropping too far, according to the report.

Home prices are down 2.8 percent year over year, according to Redfin data.

At the same time, homebuyers are battling for the small batch of homes, and nearly half the homes on the market are selling within two weeks, the highest portion in nearly a year according to Redfin.

“High mortgage rates have caused some homebuyers to bow out of the market,” Redfin Deputy Chief Economist Taylor Marr said in a statement. “But there are still more people looking for a home than there are homes for sale. That’s good news for the homeowners who want or need to sell their homes now. Nice, well-priced homes are getting multiple offers.

Call us at (480) 205 2234 to get more information about current mortgage rates.