According to a recently released report from Redfin, the Seattle-based, technology-powered real estate brokerage firm, the housing market is sending stronger signals that the pandemic-driven housing whirlwind is coming to an end.
According to the report, during the four-week period ending on May 22, 2022, nearly one out of every five (19.1%) home sellers reduced their price, the highest level since October of 2019. Measures of competition—including the typical listing’s time on market, the share of homes pending sale within one week, and the share of homes sold above list price—have all plateaued.
Mortgage-purchase applications were at a level on par with June 2020, and the number of homebuyers touring and offering on homes, as measured by the Redfin Homebuyer Demand Index, posted its largest annual decline since April 2020.
In remarks prepared to accompany the report’s release, Daryl Fairweather, Redfin’s Chief Economist, said, “The picture of a softening housing market is becoming more clear, especially to home sellers who are increasingly turning to price drops as buyers become more cost-conscious under higher mortgage rates. For now, mortgage rates have stabilized, and I expect prices to do the same. This will remove some uncertainty for buyers. That means that as long as a home is priced conservatively, it still has a good chance of selling quickly.”
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Redfin Reports Nearly 1 in 5 Sellers is Dropping Their Price, the Highest Rate Since October 2019