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Home sales are cooling — but the competition is red hot. What gives?
(excerpts from Inman News article by Ben Verde)
Record-low inventory has resulted in intense competition among homebuyers even in markets where home sales are floundering, according to new data released Thursday by Redfin.The few homes that are listed are getting snatched up fast. And among the homes that go under contract, nearly half are doing so within two weeks.
Pending home sales remain 19 percent lower than they were a year ago, partly due to so few new homes hitting the market, with would-be homesellers sitting on the bench while mortgage rates hover above 6 percent.
“Elevated mortgage rates are perhaps an even bigger deterrent for would-be sellers than for would-be buyers,” Redfin Deputy Chief Economist Taylor Marr said in a statement. “Giving up a 3 percent mortgage rate for one in the 6 percent range is a tough pill to swallow. The lack of homes hitting the market explains why the market is moving fast even though sales are still down. The lack of new listings is also one reason why sales are down: Buyers can’t buy if sellers don’t want to sell.”
“Shiny new listings are getting multiple offers and selling fast. The caveat is that they have to be priced correctly from the beginning,” Redfin agent Stephanie Collins said in the report. “Sellers are hesitant, partly because it’s not spring 2022 anymore. I’m reminding potential sellers that buyers are out there, and some homes have bidding wars — they just need to price a bit lower than they would have a year ago.”
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