Redfin Sees Further Evidence of U.S. Housing Market Cooling
Redfin Reports Pending Sales Post Smallest Increase in Over a Year
Redfin, the Seattle-based technology-powered real estate brokerage, in its most recent report covering the four-week period ending July 25, 2021, is pointing to a cooling in the housing market. As evidence, Redfin points to pending homes sales posting their smallest year-over-year increase, just 7%, a level last seen in June 2020. Redfin also notes that the supply of homes for sale continued to plateau as the number of newly listed homes for sale followed its slow seasonal decline. Home sale prices — a lagging indicator and a notable exception to the cooling trend — continued their steady ascent, up 19% year over year. Homebuying competition passed its lofty peak; the majority of homes are still finding buyers within two weeks and selling for above their asking price, leaving many buyers wondering when they may start to feel the chillier conditions. Some of those buyers have grown weary, with online home searches, in-person tours and mortgage applications all on the decline.
In a statement prepared for the release of the report, Redfin’s Chief Economist, Daryl Fairweather said, “Home sellers are increasingly having to lower their expectations. Many homebuyers have turned to the rental market amid such high home prices, but now with rental prices growing, I expect many will return to the housing market by spring of next year. The transition to this new slightly cooler phase of the housing market will happen unevenly depending on the location and the desirability of the home. If you are currently looking to buy a home, I recommend that you do your research on how much attention the home is getting before you put in your offer. If you find a home without any other offers, you may be able to get it for below the list price and with inspection and financing contingencies intact.”
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