Redfin reports an unprecedented number of home sellers since March 2020, paired with the lowest number of buyers in recent records, resulting in increased downward pressure on home prices. The median home sale price rose only 1.6% year-over-year, the slowest growth in nearly two years. Contributing factors include heightened mortgage rates and a reluctance of homeowners to sell due to attractive pandemic-era rates. As life changes drive more people to sell, the market is shifting towards buyers, and Redfin predicts a 1% decline in home prices by 2025 due to these trends.
Redfin observed the highest number of sellers since March 2020 and the lowest number of buyers, leading to significant downward pressure on housing prices.
An imbalance exists in the housing market as sellers remain hopeful for high prices, while buyers are still hesitant due to economic uncertainty.
According to Redfin, 44% of active listings were on the market for at least 60 days, indicative of sellers' unrealistic pricing expectations.
The shift of power to buyers, combined with increased active listings and economic factors, signals that home prices could decline by 1% by 2025.
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