According to an industry expert, the American real estate market is about to see a change in the coming months.
American home listing prices According to industry experts, a buyer hits an all -time high, indicating a possible change towards the market.
According to a recent report by real estate firm Redfin, overall, the price of homes in the US rose 20.3% from a year ago, reaching a record $ 698 billion. The growth was inspired by increasing inventory, slowing down demand and increasing the prices of household.
With the number of sellers beaten by buyers, Deril Fairweather, chief economist of Redfin, told Fox Business that the market is set to shift in the next few months.
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“All these houses are listed Really high pricesThis is the reason why they are sitting in the market. But buyers cannot tolerate these high prices, which is why they are out of the market, “Fairweather said, adding mortgage rates, insurance costs and property taxes,” buyers are not just cutting at these prices. ,
According to a recent report by real estate firm Redfin, the price of homes in the US rose 20.3% from a year ago, reaching a record $ 698 billion. (Justin Sulivan / Getty Image) / Getty Images)
Fairweather said that there are better options in the rental market.
As a result, the houses sitting in the market will need to be marked at the price, and the price is more conservatively required to obtain a proposal to list any new houses, Fairweather said. Otherwise, vendors have to place or keep their homes on the edge.
He said, “Ever since these people bought houses. A lot has changed. A lot has changed. The economy is changing. So I think more house owners are going to cut the bullet and reduce their prices,” he said.
Real Estate Firm founder Noel Roberts, who specializes in off-market transactions, told Fox Business that the “game is changing” for vendors as the inventory is getting stronger.
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According to Radfin, the number of houses on the market in April rose 16.7% in the year in April to reach its highest level in five years, as the mortgage rate lock-in effect is decreasing and the owners of the house are trying to cash in between economic uncertainty. The houses are also sitting in the market about a week ago compared to a year ago. According to the real estate firm, the growing stake of inventory has been in the market for more than two months.
A house for sale in front of a house in Huntington Beach. ((Alan J. Shaben / Los Angeles Times through Getty Image) / Getty Image)
Roberts said, “The sellers can no longer rely on the scatter to lift. As an inventory build, vendors will need to run smarter, more strategic playbooks.” This involves upgrading the presentation with real pricing and targeting the right buyers quickly.
Meanwhile, it offers an opportunity for buyers who have more space to interact according to Roberts.
He said, “In some submarkets, this can be the first real opportunity to secure a house with favorable terms in years. You are no longer chasing homes in the bid wars – you are evaluating inventory with leverage,” he said.
He compared the current environment to be “less about doom and more about discipline”, given that environmentally friendly sellers will sell to homes and buyers who are active, more likely to find good value to them.
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The reason for this is that sellers expect and what buyers are ready to pay, there is a disconnect between some household owners are relatively cheap hostage. As a result, many people do not feel that it is worth selling until they can get an important value, which will justify the low rate, Fairweather said. As of February, 82.8% of the house owners with hostage were below 6%. Average rate on one 30-year fixed mortgage According to Freddy Mac, currently 6.85%.
However, the lock-in effect is beginning to decrease because Americans are getting accustomed to high rates and many need to move, Radfin said.
Vendors will still get one Decent value According to Fairweather, even for their homes, given that the market is not collapsing. She projects many vendors who need to move, feeling pressure to reduce their price to meet sales.
