High Mortgage Rates Bring Balance to the Market, But Come at a High Price for Buyers and Sellers SEATTLE–(BUSINESS WIRE)–(BUSINESS WIRE) NEWS ) — (NASDAQ: RDFN ) — The housing market is becoming more balanced, but the market has slipped away for buyers with high monthly mortgage payments and after mortgage rates have doubled this year . That’s according to a new report from tech-driven real estate brokerage Redfin (redfin.com). Housing supply was 2.9 months in the four weeks ended September 11, up from 1 month a year ago and the highest level since June 2020. Months of rapid supply climbs suggest that sellers quickly lost control of the market as mortgage rates soared to 6%, leaving many buyers unaffordable. Potential sellers are reluctant to list in this environment, which is why inventory is down. But it’s also hard to say that buyers have a real advantage. “Homebuyers have more power than ever since ‘before’,” said Taylor Marr, deputy chief economist at Redfin. “Unfortunately, due to rising mortgage rates and homes for sale The lack of affordability pressure makes it increasingly difficult for buyers to take advantage of their newfound power. A true buyer’s market will have more homes for sale than buyers, with a wide variety of homes for sale, broken down by style, price and location , so when buyers find a home that matches their preferences, they face little competition and can be offered for less than asking price with proper inspection and financing surprises. The average buyer today pays less than The list price is high, but they are still struggling to find a home that fits their criteria and budget.” Leading Indicators of Home Buying Activity :
New listings for sale fell 19% year over year, the largest decline since May 2020.
Housing Market Update: Sellers Lose the Upper Hand as Mortgage Rates Top 6%
About Redfin Redfin (www.redfin.com) is a technology-driven real estate company. We help people find housing through brokerage, instant home buying (iBuying), leasing, lending, title insurance and renovation services. We sell the house at a higher price and charge half the fee. We also operate the #1 real estate brokerage website in the country. Our homebuying clients see the home first with on-demand tours, and our loan and title services help them close quickly. Customers who sell their home can get an instant cash quote from Redfin or have our renovators fix their home for a premium price. Our rental business enables millions of people across the country to find apartments and homes for rent. Since our launch in 2006, we’ve saved our clients over $1 billion in commissions. We serve more than 100 markets in the US and Canada and employ over 6,000 people. For more information or to contact a local Redfin Realtor, 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, please email p[email protected]. To view Redfin’s newsroom, click here.
View source version at businesswire.com: https://www.businesswire.com/news/home/20220915006072/en/
Redfin Reporter Services:
Kenneth Applewhite, 206-588-6863
[email protected] Source: RedfinPublished on September 15, 2022
