Redfin CEO says sellers are “starting to freak out” as market shifts
The housing market has been the record-shattering domain of sellers since the start of the pandemic, but Redfin CEO Glenn Kelman believes a shift is coming. Kelman told CNBC’s Closing Bell the housing market will look relatively similar to now in six months. He did have an encouraging prediction for buyers, though. “Rates are probably six percent, inventories are increasing, sales volume will be somewhat fine, but prices are going to soften,” Kelman said. Softening prices would be a big deal for potential buyers, who have contended with the rising cost of purchasing a home for months. The S&P CoreLogic Case-Shiller Index in February posted a 19.8 percent annual gain, the third-largest reading in 35 years. Kelman said a market pinch was coming due in part to rising mortgage rates that shot up from historic lows in the wake of the pandemic. Homeowners locked into a lower mortgage rate likely wouldn’t be inclined to pay both higher prices and higher rates for their next homes, which could signal a retreat in the market. “Buyers are saying ‘I’ve had enough’ and sellers are starting to freak out a little bit,” Kelman said. Kelman pointed to secondary markets where sellers would be most inclined to “freak out” as prices start to take a step back, including Tacoma, Washington, and Sacramento, as well as a more affordable market in Sarasota, Florida. A lack of sellers has caused housing listing inventory to collapse across the country. A recent estimate by Realtor.com found the country is short by more than 5 million homes. The number of homes on the market dropped to a record low of 456,000 in March, according to Redfin data, a 50 percent decrease from two years ago. Fannie Mae economists recently warned a “meaningful slowdown” in home sales could take root during the second and third quarters as a result of low inventory and rising mortgage rates. The economists forecasted 6.1 million total home sales this year, a reduction from previous estimates that would represent an 11.1 percent decline from last year. The Redfin CEO also noted that home flipping has become a more dicey proposition for those looking to make a quick buck. [CNBC] — Holden Walter-Warner Photo: Redfin’s Glenn Kelman (Redfin, iStock) The post Redfin CEO says sellers are “starting to freak out” as market shifts appeared first on The Real Deal South Florida.
How To Sell Your Home in the Winter
Here’s how you can sell your home this winter for top dollar. Should you sell your home in the winter? A lot of clients have asked me about this recently, and the truth is that there are many advantages to selling in the winter. Today I want to go over why you should sell now and what you can do to get top dollar for your home. One of the first things I tell people about selling during the winter is that this is the lowest point of the year for inventory. We’re seeing supply drop lower than ever right now, so if you list your home, you won’t have a ton of competition. On top of that, winter is one of the times when outside buyers come into Miami to look for a second home. This means inventory will be low, but demand should remain high. One of the biggest mistakes I see people make when they sell in the winter is that they don’t make their homes available for buyers. For expensive purchases like real estate, people like to know what they’re getting into. Institutional buyers may be willing to buy your home sight unseen, but they probably won’t give you what it’s worth. “Make sure you give buyers plenty of opportunities to visit your home. ” If you want to maximize your home sale, make your home available when buyers have time. For example, make sure you’re open on the weekends so that people can look at your house when they don’t have to work. Pick one weekend night, one weekend day, and a flex day in the middle of the week for buyers to visit. This should give buyers plenty of opportunities to view your home. You should also pay attention to your landscaping. It’s the first thing people notice about your home, and first impressions are everything in real estate. On a similar note, make sure your home is as well-lit, decluttered, and as neutral as possible. This means no family photos or odd smells. Also, make sure you give buyers space to look at your home by themselves. Go walk your dog, visit family, or do anything you need to do to give your buyers the freedom to look at your house in peace. If you follow these tips, you can easily sell your home for top dollar in our winter market. If you have any questions, please call or email me. I am always willing to help!
Home sales, building to slow: Fannie Mae
Home prices have reached historic highs in recent months, but low inventory and rising mortgage rates have some economists warning of a slowdown in both sales and homebuilding. A “meaningful slowdown” could be headed for home sales in the second and third quarters, according to an outlook from Fannie Mae reported by Inman. The economists forecasted 6.1 million total home sales this year, a reduction from previous estimates that would represent an 11.1 percent decline from 2021. The economists expect even fewer sales in 2023, 5.4 million, a further 11.6 percent decline. They believe once sales slow, construction will follow. Rising mortgage rates are one of the factors to blame for the forecasted slowdown as they hover around their highest levels since the start of the pandemic. “Historically, rapid and substantial rises in mortgage rates have had the effect of slowing activity, which we reflect in our forecast,” Fannie Mae chief economist Doug Duncan said in a statement. Fannie Mae chief economist Doug Duncan (Fannie Mae) In addition to higher mortgage rates making buying a home less affordable, homeowners may be less inclined to sell their homes and buy a new one because they are locked into a more favorable rate. In good news for hopeful buyers, the economists forecasted the appreciation of home prices to slow down. Price appreciation is expected to hit single digits next year and drop to 3.2 percent by 2023’s fourth quarter, though the deceleration varies by region. Fannie Mae economists don’t foresee another crash like 2008, though. “To be clear, even if home prices were to decline in coming years, we are not anticipating a reoccurrence of the housing market or economic turmoil seen during the 2008 financial crisis, as conditions are considerably sounder today,” the economists said. Fannie Mae economists also predicted that mortgage rates are hovering around a peak. They anticipated rates will hover around 5.1 percent for the near-term future, but will begin to drop slowly in about a year. The forecast projected mortgage originations to drop 40 percent this year and 7.4 percent next year; refinancings are forecasted to fall 69 percent in 2022 and another 38 percent in 2023. [Inman] — Holden Walter-Warner Photo: iStock The post Home sales, building to slow: Fannie Mae appeared first on The Real Deal South Florida.
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