SEATTLE
,
June 3, 2022
(press release)
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More than one in five home sellers dropped their price while several measures of homebuyer demand posted largest declines since spring 2020 May marked a turning point in the pandemic housing frenzy, as buyers regained some control over the market, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. This limited sense of control comes at a great cost, as 5% mortgage rates and record-high prices have edged many buyers out of the market. Pending sales posted their largest annual decline since spring 2020, while the Redfin Homebuyer Demand Index declined 9% during the four weeks ending May 29. The number of homes for sale climbed to a new high for this year, posting its smallest decline since April 2020. A growing share of sellers are recognizing the new limits to their power. More than one in five dropped their price, the highest rate since October 2019. “The sudden surge in mortgage rates led to a sudden and significant cooldown in the housing market in May,” said Redfin Economics Research Lead Chen Zhao. “However, mortgage rates are now stabilizing and homes remain in short supply, so while we do expect home-price growth rates to decline, we don’t expect prices to fall much at the national level. For homebuyers trying to determine the best timing this year, the main benefit of waiting is that there may be less competition as supply starts to build up.” 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 May 29. Redfin’s weekly housing market data goes back through 2015. To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-homebuyers-gain-some-control/ 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. Contact Redfin Source: Redfin Released June 2, 2022
View source version on businesswire.com: https://www.businesswire.com/news/home/20220602005905/en/
Redfin Journalist Services:
Kenneth Applewhaite, 206-588-6863
press@redfin.com
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