Redfin reports a cooling in the housing market, marked by a 1.1% drop in existing-home sales, alongside a significant increase in supply, with homes for sale up 16.7%. As mortgage rates soar since early 2022, buyer activity has diminished, prompting sellers to negotiate prices downwards. Homes now take a median of 40 days to sell, indicating a shift in market dynamics. Despite only a modest 1% expected price dip, coupled with wage growth, the market might offer improved affordability, advising buyers to leverage the current climate for negotiations.
Nearly half of current sellers are offering concessions, just shy of record highs, as they face reality after their homes sit for weeks without offers.
Economic uncertainty has further slowed buyer activity, leading to a widening gap between supply and demand in the housing market.
Redfin economists expect prices to decline nationwide because buyers are negotiating prices down due to existing homes being on the market longer.
Although a 1% dip in prices won't radically change affordability, combined with steady wage growth, housing is expected to become slightly more affordable.
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