‘We’re Not In A Frenzy Anymore,’ Real Estate Agent Says Amid Home Sellers Pulling Properties Off The Market
According to Redfin Corp (NASDAQ: RDFN) data, a record number of houses are being delisted as sellers confront a significant reduction in interest.
During the three months ending Nov. 20, 2% of houses for sale were delisted without being sold, according to Redfin. This compared to 1.6% a year ago and is another indication that the decade-long housing bubble is coming to an end.
Demand has slowed this year as mortgage rates have risen, reversing the global purchasing frenzy that caused bidding wars and propelled house prices to record highs.
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Despite a minor decrease in borrowing costs in recent weeks, many potential purchasers have already been ruled out. As a result, sellers are increasingly withdrawing their properties from the market after getting low offers that they are unable to accept, or getting no bids at all.
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“Some sellers are having a hard time grasping that we’re not in a housing-market frenzy anymore — it’s tough for them to swallow that they missed the boat on getting a high price,” said Heather Kruayai, a Redfin real estate agent.
Pandemic boomtowns, particularly those in the Sun Belt, are witnessing the greatest surge of delisted properties.
Sacramento, California, showed the greatest increase in weekly delistings, with 3.6% of active listings removed from the market on average over the 12 weeks ending Nov. 27, a 1.6 percentage point increase from the previous year. Delistings increased by 1.5% in Austin, Texas.
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The Redfin study looked at 43 of the 50 most populated cities in the United States.
With concerns about an impending economic recession, Seattle-based realtor David Palmer expects pessimistic sellers to keep their houses off the market for a longer period.
“With the word ‘recession’ out there, there’s not as much optimism about spring being a better market,” Palmer said. “Now people are talking about trying again in another year or two once the economy improves.”
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