Latest news with #sellers
Yahoo
9 hours ago
- Business
- Yahoo
'Sellers Need To Wake Up—This Isn't 2021 Anymore,' A Real Estate Agent Says, Claiming Homes Are Sitting For Weeks After Price Cuts
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The housing market has changed in some areas, but some sellers haven't caught on. "Sellers need to wake up and realize that this is not 2021 anymore. Layoffs are ramping up, wages are stagnant and rates are over 7%,' one Northern California real estate agent said on Reddit last week. In the post, the agent said listings are sitting for weeks even after sellers lower prices. 'You are not going to get 10 offers in a matter of days for your house,' they added, pointing out that some homeowners still expect 2021-level demand and pricing. Don't Miss: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Hasbro, MGM, and Skechers trust this AI marketing firm — Many commenters pointed out that the market is now heavily local. While parts of California and Texas are cooling down, others like Westchester, New York and Columbia, South Carolina are still seeing homes sell quickly. One person said, 'Houses in my neighborhood are flying off the market above list prices that are still higher than 2021.' But in markets that are slowing, unrealistic pricing is a common theme. A San Diego agent shared that a client wanted to list at $1.4 million based on a nearby renovated home, even though hers needed $120,000 in updates to match it. "People are being very cautious with their purchases," the agent said. "It will sell at the right price point, but many people have incredibly unrealistic expectations of what their homes are worth.' Trending: , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Buyers, too, aren't playing along. One Redditor said they made a below-list offer that was rejected. A week later, the seller came back and accepted it. Another shared, 'We just completed option period 16% under list on a home, including some seller repairs before close.' The frustration isn't limited to realtors or buyers. One commenter described a foreclosure that sat on the market for over a year at the same price as a new build. When the bank finally matched a buyer's earlier offer, the home still sat for months. 'Banks are dumb!' the commenter wrote. New nationwide data backs up the on-the-ground anecdotes. According to the National Association of Realtors, sales of previously owned homes in April fell 0.5% from March to a seasonally adjusted annual rate of 4 million units—the slowest April pace since 2009. That was also 2% lower than April 2024 and well below the 2.7% gain economists expected. Inventory is on the rise. The same report highlighted that the number of homes for sale rose 9% from March and was up nearly 21% compared to April 2024, hitting 1.45 million. That equates to a 4.4-month supply, the highest level in five years but still under the six-month mark that signals a balanced market. Read Next: Invest Where It Hurts — And Help Millions Heal: With Point, you can Send To MSN: 0 This article 'Sellers Need To Wake Up—This Isn't 2021 Anymore,' A Real Estate Agent Says, Claiming Homes Are Sitting For Weeks After Price Cuts originally appeared on
Yahoo
a day ago
- Business
- Yahoo
'Sellers Need To Wake Up—This Isn't 2021 Anymore,' A Real Estate Agent Says, Claiming Homes Are Sitting For Weeks After Price Cuts
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The housing market has changed in some areas, but some sellers haven't caught on. "Sellers need to wake up and realize that this is not 2021 anymore. Layoffs are ramping up, wages are stagnant and rates are over 7%,' one Northern California real estate agent said on Reddit last week. In the post, the agent said listings are sitting for weeks even after sellers lower prices. 'You are not going to get 10 offers in a matter of days for your house,' they added, pointing out that some homeowners still expect 2021-level demand and pricing. Don't Miss: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Hasbro, MGM, and Skechers trust this AI marketing firm — Many commenters pointed out that the market is now heavily local. While parts of California and Texas are cooling down, others like Westchester, New York and Columbia, South Carolina are still seeing homes sell quickly. One person said, 'Houses in my neighborhood are flying off the market above list prices that are still higher than 2021.' But in markets that are slowing, unrealistic pricing is a common theme. A San Diego agent shared that a client wanted to list at $1.4 million based on a nearby renovated home, even though hers needed $120,000 in updates to match it. "People are being very cautious with their purchases," the agent said. "It will sell at the right price point, but many people have incredibly unrealistic expectations of what their homes are worth.' Trending: , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Buyers, too, aren't playing along. One Redditor said they made a below-list offer that was rejected. A week later, the seller came back and accepted it. Another shared, 'We just completed option period 16% under list on a home, including some seller repairs before close.' The frustration isn't limited to realtors or buyers. One commenter described a foreclosure that sat on the market for over a year at the same price as a new build. When the bank finally matched a buyer's earlier offer, the home still sat for months. 'Banks are dumb!' the commenter wrote. New nationwide data backs up the on-the-ground anecdotes. According to the National Association of Realtors, sales of previously owned homes in April fell 0.5% from March to a seasonally adjusted annual rate of 4 million units—the slowest April pace since 2009. That was also 2% lower than April 2024 and well below the 2.7% gain economists expected. Inventory is on the rise. The same report highlighted that the number of homes for sale rose 9% from March and was up nearly 21% compared to April 2024, hitting 1.45 million. That equates to a 4.4-month supply, the highest level in five years but still under the six-month mark that signals a balanced market. Read Next: Invest Where It Hurts — And Help Millions Heal: With Point, you can Send To MSN: 0 This article 'Sellers Need To Wake Up—This Isn't 2021 Anymore,' A Real Estate Agent Says, Claiming Homes Are Sitting For Weeks After Price Cuts originally appeared on Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
The Independent
3 days ago
- Business
- The Independent
Sellers outnumber prospective homebuyers as high prices and mortgage rates skew the housing market
Homeowners eager to sell may have to wait a while before a buyer comes along. As of April, the U.S. housing market had nearly 34% more sellers than buyers shopping for a home, according to an analysis by Redfin. Aside from April 2020, when the pandemic brought the economy and home sales activity to a standstill, there haven't been this few buyers in the market for a home before, based on records that date back to 2013. The trend is good news for home shoppers — if they can afford to buy at current mortgage rates and prices, which are still rising nationally, albeit more slowly. Fewer buyers means less competition for home listings and more pressure on sellers to dial back their asking price and make other concessions to help get a deal done. That's a stark reversal from just a few years ago, when it wasn't uncommon for homeowners to receive offers well above their asking price from multiple home shoppers. 'The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall,' said Asad Khan, a senior economist at Redfin. The lopsided balance between buyers and sellers is reflected in home sales, which remain in a slump going back to 2022, when mortgage rates began to climb from the rock-bottom lows they reached during the pandemic. Last year, sales of previously occupied U.S. homes sank to their lowest level in nearly 30 years. Sales fell last month to the slowest pace for the month of April going back to 2009. Sellers began outnumbering buyers in November 2023, when the average rate on a 30-year mortgage climbed to a 23-year high of nearly 8%, according to mortgage buyer Freddie Mac. The average rate reached 6.89% this week, its highest level since early February. All told, there were 1.9 million sellers and 1.5 million prospective homebuyers in April, or 490,041 fewer people in the market for a home relative to sellers. A year ago, there were 6.5% more sellers than buyers. Two years ago, buyers outnumbered sellers by 5.3%. Redfin based its estimate of the number of sellers in April on active listings, or the number of homes for sale at any point during the month. It estimated the pool of people in the market for a home by creating a model that takes several other data into account, including the typical time it takes for a someone to buy after taking a tour of a home. Faced with a market with fewer potential buyers, some sellers have opted to lower prices or offer sales incentives, such as agreeing to pay for a buyer's closing costs or other expenses. Nearly 1 in 5 home listings had their price reduced last month, according to The growing imbalance between buyers and sellers should pull U.S. home prices 1% lower by the end of this year, according to Redfin. Prices have already begun to decline in select metro areas. In the four weeks ended April 20, home prices fell in 11 of the top 50 most populous U.S. metro areas, including Dallas, Oakland, California, and Jacksonville, Florida, according to Redfin. The market with the biggest gap between buyers and sellers is Miami, where sellers outnumber buyers by about 3 to 1, according to Redfin. The strongest seller's market is Newark, New Jersey, with 47.1% fewer sellers than buyers. Despite tipping more in favor of buyers, the housing market is likely to remain unaffordable for many Americans. The median U.S. home sales price has jumped 53% over the past six years, far outpacing wage growth. And while the inventory of previously occupied U.S. homes climbed last month to the highest level since September 2020, it's still well below pre-pandemic era levels and short on properties that most Americans can afford. Before the pandemic, households earning $75,000 a year could afford to buy nearly half of all homes on the market nationally. As of March, only 21.2% of home listings were affordable, according to a recent analysis by the National Association of Realtors. A home is considered affordable if monthly payments don't exceed 30% of household monthly income. 'Without a significant boost in housing inventory at price points below $260,000, the path to homeownership will remain blocked for millions of Americans who are otherwise financially ready to buy,' according to the NAR report.
Associated Press
3 days ago
- Business
- Associated Press
Sellers outnumber prospective homebuyers as high prices and mortgage rates skew the housing market
LOS ANGELES (AP) — Homeowners eager to sell may have to wait a while before a buyer comes along. As of April, the U.S. housing market had nearly 34% more sellers than buyers shopping for a home, according to an analysis by Redfin. Aside from April 2020, when the pandemic brought the economy and home sales activity to a standstill, there haven't been this few buyers in the market for a home before, based on records that date back to 2013. The trend is good news for home shoppers — if they can afford to buy at current mortgage rates and prices, which are still rising nationally, albeit more slowly. Fewer buyers means less competition for home listings and more pressure on sellers to dial back their asking price and make other concessions to help get a deal done. That's a stark reversal from just a few years ago, when it wasn't uncommon for homeowners to receive offers well above their asking price from multiple home shoppers. 'The balance of power in the U.S. housing market has shifted toward buyers, but a lot of sellers have yet to see or accept the writing on the wall,' said Asad Khan, a senior economist at Redfin. The lopsided balance between buyers and sellers is reflected in home sales, which remain in a slump going back to 2022, when mortgage rates began to climb from the rock-bottom lows they reached during the pandemic. Last year, sales of previously occupied U.S. homes sank to their lowest level in nearly 30 years. Sales fell last month to the slowest pace for the month of April going back to 2009. Sellers began outnumbering buyers in November 2023, when the average rate on a 30-year mortgage climbed to a 23-year high of nearly 8%, according to mortgage buyer Freddie Mac. The average rate reached 6.89% this week, its highest level since early February. All told, there were 1.9 million sellers and 1.5 million prospective homebuyers in April, or 490,041 fewer people in the market for a home relative to sellers. A year ago, there were 6.5% more sellers than buyers. Two years ago, buyers outnumbered sellers by 5.3%. Redfin based its estimate of the number of sellers in April on active listings, or the number of homes for sale at any point during the month. It estimated the pool of people in the market for a home by creating a model that takes several other data into account, including the typical time it takes for a someone to buy after taking a tour of a home. Faced with a market with fewer potential buyers, some sellers have opted to lower prices or offer sales incentives, such as agreeing to pay for a buyer's closing costs or other expenses. Nearly 1 in 5 home listings had their price reduced last month, according to The growing imbalance between buyers and sellers should pull U.S. home prices 1% lower by the end of this year, according to Redfin. Prices have already begun to decline in select metro areas. In the four weeks ended April 20, home prices fell in 11 of the top 50 most populous U.S. metro areas, including Dallas, Oakland, California, and Jacksonville, Florida, according to Redfin. The market with the biggest gap between buyers and sellers is Miami, where sellers outnumber buyers by about 3 to 1, according to Redfin. The strongest seller's market is Newark, New Jersey, with 47.1% fewer sellers than buyers. Despite tipping more in favor of buyers, the housing market is likely to remain unaffordable for many Americans. The median U.S. home sales price has jumped 53% over the past six years, far outpacing wage growth. And while the inventory of previously occupied U.S. homes climbed last month to the highest level since September 2020, it's still well below pre-pandemic era levels and short on properties that most Americans can afford. Before the pandemic, households earning $75,000 a year could afford to buy nearly half of all homes on the market nationally. As of March, only 21.2% of home listings were affordable, according to a recent analysis by the National Association of Realtors. A home is considered affordable if monthly payments don't exceed 30% of household monthly income. 'Without a significant boost in housing inventory at price points below $260,000, the path to homeownership will remain blocked for millions of Americans who are otherwise financially ready to buy,' according to the NAR report.
Bloomberg
3 days ago
- Business
- Bloomberg
A Soft Housing Market Isn't Just a Florida and Texas Story Now
House prices are falling, and it's no longer just a Florida and Texas story. Rising inventory across the country and still reluctant buyers mean that those looking to sell face the prospect of more competition and lower prices next spring if they don't close on a deal soon. For buyers, holding out can mean a better price. This shift in market psychology should finally break the impasse that has choked transactions for the past few years. Despite poor affordability, the housing market was protected — or made dysfunctional, depending on your perspective — by a lack of supply as homeowners with pandemic-era mortgage rates felt no pressure to sell. Prices drifted higher. If a house didn't sell by Labor Day, sellers often withdrew it from the market over the winter on the reasonable view that, come spring, there still wouldn't be much resale inventory and home prices would likely be a couple of percent higher.
