According to Redfin, the Seattle-based, technology-powered real estate brokerage firm, the supply of America’s most affordable homes for sale jumped 13% year-over-year in Q3 2021. This occurred as mortgage forbearance programs came to an end, prompting many owners of low-cost homes to put their properties on the market.
Redfin’s estimate of homes’ market values are divided into five tiers: most affordable, affordable, mid-priced, expensive, and luxury. According to the report, housing supply in both the most affordable and affordable price tiers remains below historic levels despite the recent record increase.
There were 78,000 active listings in the most affordable tier during Q3 2021, compared with more than 100,000 during each of the same periods from 2013 through 2016. In the luxury price tier, there were 158,000 active listings in the Q3, the fourth-lowest level on record, which dates back to 2013.
In remarks prepared for the news release, Redfin Chief Economist Daryl Fairweather said, “The end of forbearance has forced many lower-income Americans to put their homes up for sale and become renters. This has caused the number of affordable homes on the market to surge, helping replenish inventory amid an acute housing shortage. It’s a rainstorm after a long drought, but the drought isn’t over yet.”
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Supply of Affordable Homes Posts Record Gain as Mortgage Forbearance Ends