Latest news with #ChenZhao
Newsweek
01-08-2025
- Business
- Newsweek
Number of Home Sellers Taking Their House Off the Market Skyrockets
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Facing reluctant buyers and increasing pressure to lower their asking prices, a growing number of American sellers are taking their homes off the market entirely, according to a new report by Nationwide, delistings were up by 48 percent in July compared to a year earlier, the report found, as sellers refuse to adjust their price expectations to a market that is slowly shifting in favor of buyers. For every 100 newly listed homes added to the U.S. market in the same month, 21 were delisted. "This points to sellers anchored to peak-era price expectations and willing to wait rather than negotiate," Danielle Hale, the chief economist at said in the report. How Did We Get Here? The U.S. housing market has recently reached a breaking point as aspiring buyers struggling with sky-high home prices, historically elevated mortgage rates and other rising costs did not show up for this year's homeselling season. While spring usually marks the busiest time of the year for home sales and purchases, this year was a sluggish one. Sellers who were locked into their homes by lower monthly payments stopped waiting for mortgage rates to go down and listed their homes, but these listings began piling up on the market unsold. As a result, sellers are increasingly being forced to offer price discounts, and the market is slowly shifting toward buyers. Some parts of the country, including many Florida metropolitan areas where prices have dropped as inventory surged, are already buyers' markets. A general view of a home advertised for sale in a residential neighborhood in San Jose, California, on August 15, 2024. A general view of a home advertised for sale in a residential neighborhood in San Jose, California, on August 15, Do Delistings Do to the Market? Already in the spring, experts were warning that sellers, despite the recent headwinds, still had the upper hand on the market. Chen Zhao, the head of economics research at Redfin, told Newsweek that while she expected inventory to continue rising in the near future, it might not do so at the same pace seen in the past few months. "The rise in new listings may slow down a bit though as some sellers do decide to hold back because prices are getting soft. Very few people will be forced to sell because they're underwater or facing foreclosure," Zhao said. "Many will be waiting for rates to come down a bit and others may wait for price growth to improve again," she added. "It really depends on each seller's personal circumstances whether waiting makes sense." However, "many sellers will be forced by circumstances to sell, and a lot of them will have been waiting for three years for rates to come down. Additionally, there are a lot of people sitting on home equity that they use to help with the sticker shock of going to 7 percent mortgage rates," Zhao continued. This means that while buyers will continue to see more options on the market and will acquire more negotiating power as inventory increases, they are unlikely to see dramatic price changes at the national level as sellers push the brakes on this supply growth. The highest share of delistings compared to new listings in the entire nation was seen in Miami, Florida, at 59—more than double compared to May. It was followed by Phoenix, Arizona, with 37 delistings and Riverside, California, with 30 delistings. These numbers, Redfin experts said, suggested that sellers in these metros were confident in the strength of their city's markets and their future.
Business Wire
24-07-2025
- Business
- Business Wire
Redfin Reports U.S. Home Prices Fall 5-10% From Last Year for Russian, Japanese and European Buyers as Dollar Weakens
SEATTLE--(BUSINESS WIRE)--The median price of a U.S. home rose 1% to a record $447,035 in June, straining affordability for many Americans. But for international buyers using Russian, Japanese or European currencies, the typical home now costs 5% to 10% less than it did a year ago—thanks to a weaker U.S. dollar. That's according to a new r epo r t from Redfin, the real estate brokerage powered by Rocket. 'Some foreign buyers may be considering stepping back into the market now because their currencies have gained ground against the dollar' Share U.S. home prices are down nearly 10% in Russian rubles Of the foreign currencies Redfin examined, the Russian ruble strengthened the most against the U.S. dollar over the past year: As U.S. home prices rose 1%, the equivalent price fell 9.6% in rubles. Homebuyers using Swiss francs or Swedish krona saw prices fall 8%, thanks to stronger exchange rates against the U.S. dollar. Buyers using Japanese yen (-7.6%), euros (-5.6%) or British pounds (-5.3%) recorded the next biggest potential price savings of the currencies analyzed. Not all currencies have benefited from the weaker greenback, however, with several losing value, largely due to countries' close economic ties to the U.S. U.S. homes became more expensive over the past year for buyers using the currencies from the top four countries where America's foreign homebuyers originate from: Chinese yuan (+0.1%), Canadian dollar (+0.9%), Mexican peso (+5.7%) and the Indian rupee (+4%). The U.S. dollar has weakened in 2025 amid economic uncertainty The U.S. dollar dropped more than 10% in the first six months of the year in comparison to a handful of currencies from America's largest trading partners—the worst start to a year in more than 40 years. Economists have cited President Trump's tariff policies, U.S. government debt and the potential early nomination of a new Federal Reserve chair among the reasons for the depressed dollar. It's worth noting that foreign buyers who finance a home purchase with a U.S. mortgage may attract a slightly higher rate than domestic buyers. But with elevated mortgage rates and high prices keeping many domestic homebuyers on the sidelines, foreign buyers—who are significantly more likely to pay for homes in cash—are in a position to take advantage of a real estate market that is already turning in favor of buyers. The National Association of Realtors say foreign purchases of existing homes increased in the 12 months between April 2024-March 2025, compared to the previous 12 months, but still lagged well behind the levels seen in the 2010s. 'Some foreign buyers may be considering stepping back into the market now because their currencies have gained ground against the dollar,' said Chen Zhao, Redfin's head of economic research. 'Their money simply goes further than it did a year ago. It's like getting a discount that domestic buyers can't access.' Oakland offers biggest potential discount for buyers using foreign currencies Potential foreign currency discounts are bigger (or smaller) in different parts of the country—due to differences in year-over-year price growth in local markets. The biggest potential savings for buyers using foreign currencies are, in order: Oakland, CA, West Palm Beach, FL, Jacksonville, FL, San Diego and Atlanta. That's because those metro areas saw home prices fall the most year over year in June. The five metros where prices grew the most over the past year—and therefore have the smallest potential savings in foreign currencies—are Newark, NJ, Detroit, Cleveland, Pittsburgh and Nassau County, NY. To view the full report, including charts and full metro-level data, please visit: About Redfin Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin's clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.
Daily Mail
22-07-2025
- Business
- Daily Mail
Florida housing crisis described in five chilling words as homeowners brace for market collapse
Florida 's turbulent housing market has been described in five chilling words as homeowners desperately try to offload properties. Chen Zhao, the head of economics research for Redfin, described South Florida as the 'epicenter of housing market weakness' in the US. 'The question for the rest of the country is, will this spread? Florida is uniquely bad right now,' Zhao told Bloomberg last month. The area saw a huge influx of new residents during the Covid-19 pandemic. Americans, freed by work from home orders, arrived in search of sunnier weather and lower taxes. But now the bubble has well and truly burst, and homeowners are struggling to sell amid a growing condo crisis and soaring insurance and mortgage rates. In April, contracts to buy homes in the Miami, West Palm Beach and Fort Lauderdale regions fell dramatically from the year prior. Homes also lingered longer on the market. Pending sales fell 23 percent in Miami, according to Redfin, which was the largest drop among the 50 most populous metro area across the US. Transactions were down almost 19 percent in Fort Lauderdale and tumbled around 14 percent in West Palm Beach. Chen Zhao, the head of economics research for Redfin, described South Florida as the 'epicenter of housing market weakness' in the US Homes also spent an average of 83 days on the market in West Palm Beach and Fort Lauderdale, and 81 in Miami. This is more than double the national median of 40 days in April. It is a stark turnaround from the height of the pandemic, when homes in these regions were snapped up quickly and regularly sold for more than their listing price. 'I think you're seeing a really long, slow deflation of that bubble,' Zhao told Bloomberg of the southern markets that boomed during Covid. Prices in the region are also taking a hit as sellers try to incentivize buyers and offload properties. In April, West Palm Beach, Fort Lauderdale and Miami saw nearly 5 percent of sales close below listing price, according to Redfin. Condo prices, in particular, are plummeting, and Florida is being hardest hit. The average condo sale price in the US fell 2.2 percent year over year to $354,100 in May, according to separate data from Redfin — the second largest drop in records dating back to 2012. The 2021 collapse of a condo building in Surfside led to a new law that requires condo buildings to undergo structural inspections and shore up reserves In May, Deltona, Florida, saw prices fall over 32 percent year-over-year, which was the steepest decline nationwide. Seven of the top ten metros with the largest price declines were in Florida, and two in Texas. Sellers in parts of Florida have had to drop prices below $10,000. Rising Homeowners Association (HOA) dues and insurance costs have exacerbated the slowdown for condos in the state, paired with the increased risk of deadly natural disasters and heightened building regulations. The 2021 collapse of a condo building in Surfside led to a new law that requires condo buildings to undergo structural inspections and shore up reserves. This has meant that Many HOAs have been hiking fees and doling out hefty special assessments to comply with the new rules, which has reduced demand for condos. One Miami condo association filed for bankruptcy in June, buried under tens of millions in debt. Experts fear it could be a warning sign of what is to come for other aging complexes across Florida, as communities are pushed to the brink by a perfect storm of issues.
Newsweek
14-07-2025
- Business
- Newsweek
Quarter of Millennial, Gen Z Used Family Money to Buy New Homes
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Nearly one in four young Americans who recently purchased a home relied on family money—either as a cash gift or inheritance—for their down payment, according to a survey commissioned by Redfin. Why It Matters The findings, published on Monday, highlight the growing role of family support for millennial and Generation Z homebuyers, as housing affordability worsens nationwide due to increased prices, historically high mortgage rates and less consumer confidence in the long-term economy. The total number of unsold homes in the U.S. in June was up 20 percent compared with a year earlier, according to while inventory was up by 28.9 percent year-over-year. In the same month, pending home sales were down 1.6 percent from June 2024. Sellers have also had to wait a little longer, as homes last month spent a median of 53 days on the market before going under contract, five more days than a year ago. What To Know The Redfin-commissioned survey of 4,000 U.S. residents conducted by Ipsos in May found that 23.8 percent of recent Gen Z and millennial homebuyers had tapped family money for their down payment. Of those, 20.7 percent reported using a cash gift from family, and about 11 percent had received an inheritance. About 18 percent said they were able to save for a down payment by living with family or friends, illustrating multiple forms of intergenerational support in the current market. Chen Zhao, head of economics research at Redfin, told Newsweek via phone on Monday that the survey's results mimic concerns of the past three or four years going back to the COVID pandemic. The younger aspiring buyers still face massive hurdles today. "The ones who are successfully able to buy are relying on family support because most of us who are buying homes already own homes, and oftentimes you're able to use the equity from your first house to fund the next house," Zhao said. "But for a first-time home buyer, they're at a disadvantage." The root of this is home prices increasing about 45 percent for two years before the pandemic, Zhao said, with prices not really falling while mortgage rates simultaneously doubled. Millennials and Gen Z are more often going to their parents and families for financial assistance in putting a down payment on a home, with housing prices still in flux after the pandemic. Millennials and Gen Z are more often going to their parents and families for financial assistance in putting a down payment on a home, with housing prices still in flux after the pandemic. Getty Images More than half—56.5 percent—of Gen Z and millennial homebuyers reported saving directly from their paychecks, making this the most common path to a down payment. Other methods included selling stock investments (20.4 percent), working a second job (17.6 percent), selling cryptocurrency (12.7 percent) and receiving help from government or nonprofit organizations (less than 12 percent). "A lot of them are still relying on their own savings, but a lot of the time your own savings isn't enough unless if you're making an extremely high salary in a lot of markets," Zhao said. "And for the parents and their families who are investing in their kids, I think they recognize that there is this sort of need to do that if you want your kids to own a house." Historically, if you're looking to buy a house and determining mortgage payments, broadly speaking, past homebuyers could afford a monthly payment of about 30 percent or less of a median family's income, Zhao added. "Affordability has just gotten completely out of whack," she said. "So, now we are way above that affordability threshold. For parents of the younger generation who lived through this time period, they can see that happening. It's only all that surprising that a lot of families are willing to help the younger generation." The survey results came as home prices and mortgage payments reached near record highs across the country. The typical down payment rose to about $63,000 in 2024, a 7.5 percent increase from the previous year and equivalent to 16.3 percent of the median purchase price. Wage growth has failed to keep pace with escalating housing costs, making it increasingly challenging for younger Americans to afford a home on their own incomes. What People Are Saying Dan Close, Redfin Premier agent in Chicago, said in a statement: "People need to live somewhere, and living somewhere costs money. The problem right now: housing costs too much for a lot of people. Some of those people live with their parents, and some are lucky enough to get help from their parents for a down payment and/or their monthly housing payments. In cases where that's an option, it's not a bad time to buy and start building equity because it's a buyer's market and lots of sellers are giving concessions." What Happens Next With affordability challenges and high down payments persisting, reliance on family assistance may continue defining how young Americans enter the housing market. The data suggests intergenerational wealth could shape homeownership rates and patterns among Gen Z and millennials if current trends hold.
Edmonton Journal
09-07-2025
- Business
- Edmonton Journal
Canadian searches for U.S. real estate shows steep decline: report
There has been a nationwide effort among Canadians to buy local and travel domestically this year, as a strained relationship with the United States continues. And now, a new report is suggesting that the number of Canadians interested in U.S. real estate has declined. Article content Nearly 30 per cent fewer Canadians searched for properties to buy or rent in the U.S. this May, compared to last year, according to a report by real estate company RedFin. The decline began in February. That was around the same time tensions were rising between the neighbouring countries, sparked by U.S. President Donald Trump's heated rhetoric about Canada becoming the 51st state and the beginning of a trade war, when 25 per cent tariffs were implemented on Canadian goods going to the U.S. Article content Article content Article content 'The Canadian dollar has been relatively weak this spring, making it harder for Canadians to afford already-expensive U.S. real estate,' RedFin said in its report. Article content The decline has affected 48 of the largest metro areas in the United States, according to RedFin. That includes Canadians searching for homes in Houston, which dropped 55.2 per cent year over year in May, as well as Philadelphia, by 53 per cent, and Chicago, by 47 per cent. Article content The report also noted that the housing market in Florida for both American and Canadian buyers 'has cooled.' The state is a popular destination for Canadian snowbirds. In April, lawmakers in the U.S., including a Florida congresswoman, cosponsored a bill that would allow Canadian snowbirds to visit for longer. The report cited the lack of interest in the state was likely due to a surge in insurance costs in its coastal regions as well as intensifying climate disasters. Article content Article content Canadians searching for homes in Miami and Orlando declined by about 30 per cent year over year in May, the report said. Article content Article content Canadians have made up a large portion of international buyers in the United States. In 2024, they were listed as the top foreign buyers — at 13 per cent — spending US$5.9 billion, according to the National Association of Realtors. Article content The head of economics research for Redfin Chen Zhao told National Post in an emailed statement on Tuesday that the U.S. real estate market is 'already weak.' She added that it has had historically low sales volume for the past three years and prices are starting to fall in many parts of the country. Article content 'If Canadian demand continues to fall, then that means further weakness for the U.S. real estate market,' she said. 'The importance of Canadian buyers will vary by geography, so the impact will be large in places like Florida, Palm Springs in California, Texas and Arizona.'
