"The housing market is stuck in an unending circle of gridlock: Buyers aren't inclined to purchase a home because mortgage rates and home prices are too high (they're up 1.7% year over year at $440,004, according to Redfin). And homeowners don't want to sell their homes to trade for a higher mortgage rate and out of fear they won't get what they think their home is worth."
"Active listings fell 1.4% in August, which represents the biggest monthly decline since 2023, according to a Monday report from Redfin. "High housing costs and economic jitters have rattled buyers, and that unease has spilled over to sellers," Chen Zhao, Redfin's head of economics research, wrote in the report. "We currently expect existing-home sales to end the year at around 4.05 million, or roughly flat compared to 2024, which was the worst year for sales since 1995.""
Mortgage rates have dipped slightly and home-price growth has steadied, but buyer and seller caution persists. Active listings declined 1.4% in August, signaling reduced supply. Home prices are up about 1.7% year over year to roughly $440,004, leaving many buyers priced out. Homeowners are reluctant to list because trading into a higher mortgage rate and uncertain sale prices creates risk. Delistings surged, with June delistings up 47% year over year and 34% year to date. Sellers face a choice to lower prices to sell or hold out and risk prolonged market time; sales remain below pre-pandemic levels.
Read at Fortune
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