Redfin Reports Homebuying Demand Dips Further as Rates Approach 6%
(NASDAQ: RDFN) -Homebuying demand pulled back further as mortgage rates reached their highest level in over 13 years, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
Home tours, offers and other requests for agents' help, as measured by The Redfin Homebuyer Demand Index, posted their largest annual decline in over two years. Sellers are not holding out. The weekly share of listings with a price drop reached a new high during the four weeks ending June 19.
"Mortgage rates near 6% have put a big chill on demand for homes," said Redfin chief economist Daryl Fairweather. "With home prices still at record highs, the affordability crisis has been dialed up to an 11 out of 10. Home sellers are aware of this as well; a record share are dropping their asking price. Even though there are fewer home sales, prices have not declined any significant amount yet. But if the housing market continues to cool, prices could fall in 2023."
"Many home sellers have it stuck in their head that homes are selling a certain amount above asking, or that they can under-price their home to try to generate a bidding war, but that strategy isn't working anymore," said Boston Redfin real estate agent Robin Spangenberg. "High mortgage rates have kicked a lot of buyers right out of the market. This means sellers need to price their home at whatever they are okay walking away with, because they might only get one or two offers now."
Leading indicators of homebuying activity:
Unless otherwise noted, this data covers the four-week period ending June 19. Redfin's weekly housing market data goes back through 2015.
To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-homebuying-demand-dipped-further/
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
For more information or to contact a local Redfin real estate agent, 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, email [email protected]. To view Redfin's press center, click here.