Redfin, the Seattle-based, technology-powered real estate brokerage, reported on Wednesday (9-29-21) that the asking prices of homes listed for sale increased to an all-time high of 12%. On the other hand, pending home sales were just 4% higher year-over-year, the smallest increase since June 2020.
In addition, other housing market measures continue to show a typical seasonal cooling, with fewer than half of the homes selling above list price and new listings of homes for sale down -20% from their 2021 peak.
In remarks prepared for the release of the report, Redfin’s Chief Economist, Daryl Fairweather said, “Home sellers continue to show their optimism with increasing asking prices. However, there are already signals from the Fed and markets that mortgage rates are starting to creep up. The hit to affordability that comes with higher rates and higher home prices could let some steam out of the market. It’s never a good idea to overprice your home, but I would be especially wary of overpricing as seasonal cooling trends persist and rising rates take some affordability out of the homebuying equation.”
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Redfin Reports Asking Prices Up 12% to All-Time High