Home delistings hit record as mortgage rates, home prices remain elevated

A record number of homes have been withdrawn from the market in recent weeks, as buyers and sellers continue to pull back amid high interest rates and runaway inflation, coupled with growing fears of a recession.

According to recent data from Redfin, a record 2% of homes for sale in the United States were taken off the market each week on average during a 12-week period ending November 20. That compares to 1.6% of homes that were delisted during the same period a year earlier, according to the real estate brokerage.

In many cases, sellers receive no offers for their asking price, and “sometimes no offers at all”, driving them out of the market, according to the real estate brokerage.

There has been a sharp drop in demand due to the increase mortgage rates and home prices, Redfin reported.

While mortgage rates have fallen slightly since last month, monthly mortgage payments are still significantly higher than a year ago.

The residential real estate for sale sign is seen as inflation and interest rates rise on October 27, 2022 in Washington, DC. (Brendan Smialowski/AFP via Getty Images/Getty Images)

HOUSING AGENCY REPORTS RECORD FINANCIAL CUSHION AS IT PREPARES FOR MARKET DOWNTURN

On Thursday, mortgage buyer Freddie Mac announced that the 30-year average rate had fallen to about 6.49%, compared to 6.58% last week. A year ago, the 30-year rate averaged 3.11%.

“Some sellers are struggling to understand that we are no longer in a housing market frenzy – it’s hard for them to swallow that they missed the boat by getting a high price,” said Heather Kruayai, agent Florida-based Redfin real estate. .

By the time sellers realize their price of their house too high, their property has already been on the market too long, Kruayai added.

Of the metros tracked by Redfin, Sacramento, Calif., had the highest share of listings, 3.6%, that were taken off the market during the 12-week period. That’s a 1.6% increase from a year ago, according to the brokerage.

immovable

A For Sale sign is displayed in front of a single family home on Beverly Anne Street June 13, 2022, in Las Vegas., Nevada. (Bizuayehu Tesfaye/Las Vegas Review-Journal/Tribune News Service via Getty Images)/Getty Images)

Teleprinter Security Last To change To change %
RDFN REDFIN CORP. 5.62 +0.11 +2.00%

AMERICANS SEE HIGHER INFLATION: NY FED

However, Austin, Texas; Seattle, Washington; Phoenix, Arizona; and Denver, Colorado also saw a large number of active listings exiting the market.

GET FOX BUSINESS ON THE ROAD BY CLICKING HERE

Although the five aforementioned markets have grown in popularity over the coronavirus pandemic with remote workers, home prices have skyrocketed and now “with many overpriced buyers, they are among the fastest cooling markets in the country,” according to Redfin.

In Sacramento, for example, annual home price growth was 0% in October. Last spring, it was 29.3%, according to Redfin.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top