SEATTLE
,
August 26, 2022
(press release)
–
Would-be sellers are reluctant to list their homes as they have begun to see prices come down. With few new listings, buyers’ newfound bargaining power is reaching its limit, especially now that demand has stabilized. New listings of homes for sale fell 15% year over year in the four weeks ending August 21, the biggest annual decline since the start of the pandemic. As a result, the supply of for-sale homes fell 0.6% from the previous four-week period–a slight decline, but just the second such drop since February, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The dearth of homeowners putting their homes up for sale is partly a reaction to reduced demand and falling prices as there are fewer buyers in the market due to rising mortgage rates and economic uncertainty. Those who are listing their homes are starting to price in line with lower demand. The median asking price of newly listed homes dropped 5% from the record high set in May, and sale prices dropped 6% from the record high set in June. The share of for-sale homes with a price drop leveled off after rising throughout the spring and early summer. "Sellers are coming to terms with the fact that volatile mortgage rates have dampened demand. Some sellers are pricing lower, and some homeowners are staying put because they're nervous they won’t get a good offer or they're hesitant to give up their low mortgage rate," said Redfin Economics Research Lead Chen Zhao. "Because the number of homes for sale is no longer rising, buyers’ newfound bargaining power is reaching its limit. It’s worth noting that early demand indicators such as tours and requests for help from agents are elevated from their June lows and remain steady. So there is a pool of interested buyers out there, but sellers need to price fairly to attract them. If more sellers and buyers find that middle ground on price, we could see sales strengthen a bit.” Leading indicators of homebuying activity: Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, this data covers the four-week period ending August 21. Redfin’s weekly housing market data goes back through 2015. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-sellers-retreat-new-listings-drop. About Redfin Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people. For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here. Redfin Journalist Services: Source: Redfin Released August 25, 2022
View source version on businesswire.com: https://www.businesswire.com/news/home/20220825005668/en/
Kenneth Applewhaite, 206-588-6863
press@redfin.com
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.