In these times, double down — on your skills, on your knowledge, on you. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Get your ticket now for the best price.

The number of homes for sale in the United States plunged 6 percent from a year earlier during the monthlong period ending June 11 — a nearly 40 percent free-fall from five years ago, according to an analysis released Thursday by Redfin.

New listings dropped 23 percent year over year during the same period, pulling the total number of homes on the market down 39 percent from June 2018, according to the Redfin data.

The inventory drop-off is partly due to a decade-long homebuilding slump and mortgage rates climbing to 20-year highs, leaving most would-be homesellers reluctant to list homes and give up on lower mortgage rates.

“The Fed’s indication [Wednesday] that there are more rate hikes to come is not what homebuyers want to hear,” Redfin Economics Research Lead Chen Zhao said in a statement. “It’s likely to keep mortgage rates elevated and may even push them up a bit.”

A separate Redfin study released this week found that nearly 92 of homeowners with mortgages have an interest rate below 6 percent. Additionally, 82.4 percent boast a rate below 5 percent, 62 percent enjoy a rate below 4 percent and 23.5 percent lucked out on locking in a rate below 3 percent, according to the analysis.

The record-low mortgage rates of 2020 and 2021 drove a feeding frenzy in the housing market that also depleted much of its inventory. In March 2019, 1.4 million homes hit the market in the United States. Three years later that inventory had been slashed in half to just 727,000.

Redfin
Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×