‘It’s a remarkably uncertain time’: Redfin CEO warns of rapidly cooling housing market — including t

[libertybele]

I don't blame people from pulling out of their contracts; better to lose deposits than to enter into a mortgage and have to go into foreclosure.  Lots of building still going on around here and several large projects are underway; one is a $50 mil project and the other is over $65 mil.  I think they are insane.  A huge risk, but I suppose with that kind of money they don't worry.

‘It’s a remarkably uncertain time’: Redfin CEO warns of rapidly cooling housing market — including the cancellation of deals under contract

After a stellar two-year run, the housing market is sputtering as buyers pull back sharply. One real-estate chief said the market is indeed course correcting, and it’s getting hard to make a deal as more contracts falling through.

With the Federal Reserve hiking benchmark interest rates, “demand fell sharply in May and June … [as] buyers were absolutely freaked out,” Redfin RDFN, -5.75% CEO Glenn Kelman told MarketWatch in an interview.

Since then, the housing market has since recovered somewhat, he noted, but “we still will have, even for the deals that are under contract, a very high cancellation rate.”

“It’s just hard to put deals together because the economy is so volatile,” he added. “It’s a remarkably uncertain time.”

‘It’s just hard to put deals together because the economy is so volatile.’
— Glenn Kelman, Redfin

Responding to buyers pulling back from the market, sellers have also become increasingly apprehensive about listing.

New listings for homes have fallen 15% in the four weeks ending Aug. 21, a report published Thursday by Redfin said. That is the biggest decline in listings since the start of the pandemic.

That’s pushing down the supply of homes slightly, Redfin said, as the number of for-sale homes dropped 0.6% from the previous four week period.

To find a match quickly, sellers are pricing their homes more aggressively, with the median asking price of newly listed homes falling 5% from the record high set in May.............

https://www.marketwatch.com/story/its-a-remarkably-uncertain-time-redfin-ceo-warns-of-rapidly-cooling-housing-market-says-deals-under-contract-are-being-cancelled-11661467568?mod=home-page

[Free Vulcan]

In some ways it needs to cool. Prices even out here in the hinterlands are just stupid. Hardly anyone can afford to buy, particularly younger couples.

I realize that hurts prospective sellers, but you can't sell if no one can buy.

My main fear is that county and state budgets often are based on property taxes. If they haven't been fiscally responsible with the windfall, they may get boomeranged.

[libertybele]

In some ways it needs to cool. Prices even out here in the hinterlands are just stupid. Hardly anyone can afford to buy, particularly younger couples.

I realize that hurts prospective sellers, but you can't sell if no one can buy.

My main fear is that county and state budgets often are based on property taxes. If they haven't been fiscally responsible with the windfall, they may get boomeranged.

The housing market at least around here has always been cyclical.  This recent building boom and skyrocketing property values is the highest I've ever seen.  Yes, it needs to cool. However, the economy is cooling right along with it.  Not a good sign of things to come.

[Free Vulcan]

The housing market at least around here has always been cyclical.  This recent building boom and skyrocketing property values is the highest I've ever seen.  Yes, it needs to cool. However, the economy is cooling right along with it.  Not a good sign of things to come.

That's the consequences of playing pattycake with inflation. You either destroy the currency, or crash the economy trying to save it. We here have never recovered from the Rust Belt depression caused by Jimmah's flirtation with inflation.

[DCPatriot]

Was advertising and doing EXACTLY what Redfin does today...back in 2000.

When 6% was the typical listing fee (3%/3%), I charged 5% (2%/3%...so the selling broker/agent didn't take a hit).

And if somebody bought a home with me as their agent, we listed their home for 4% (1%/3%)

[libertybele]

That's the consequences of playing pattycake with inflation. You either destroy the currency, or crash the economy trying to save it. We here have never recovered from the Rust Belt depression caused by Jimmah's flirtation with inflation.

It appears that Joe is both destroying the currency and crashing the economy -- the Great Reset is here.

[libertybele]

Was advertising and doing EXACTLY what Redfin does today...back in 2000.

When 6% was the typical listing fee (3%/3%), I charged 5% (2%/3%...so the selling broker/agent didn't take a hit).

And if somebody bought a home with me as their agent, we listed their home for 4% (1%/3%)

The 6% commission is brutal and really takes a chunk out of profits for sure.  Next time we go to sell our home we will list it ourselves; the paperwork is the same throughout the state and we will sell as is to cover our behinds.  When buying we'll ask the seller to pay all closing costs.  I'm not going to eat tens of thousands of dollars again. 

With the internet it's easy enough to advertise a home and find a home to buy.

[DCPatriot]

I'm not the least bit concerned about the coming real estate market 'crash'.

If people had already tapped their market equity on top of a 3.00% fixed rate 1st trust...they should be alright unless somebody loses a job or gets transferred/relocates and has to see.

What we're going to see are a ton of Short-Sales...where the unsatisfied 2nd trust holder has a tougher job being made 'whole'.

[libertybele]

I'm not the least bit concerned about the coming real estate market 'crash'.

If people had already tapped their market equity on top of a 3.00% fixed rate 1st trust...they should be alright unless somebody loses a job or gets transferred/relocates and has to see.

What we're going to see are a ton of Short-Sales...where the unsatisfied 2nd trust holder has a tougher job being made 'whole'.

I am starting to see homes unfinished on building sites and incomplete apartment building sites.  6 mos. ago people couldn't find a home or an apartment.  I think the real estate market is already crashing.

[catfish1957]

I give this one, the Catfish "Flying Financial Understatement" Award for the month.

Especially if you live on the left and right coasts, don't be surprised to see you home value down 50% soon from a year ago.

All dancing to the Interest Rate Shuffle.

Next shoe to drop.....    car market.